Chill, Inc. uses standard costing for its one product, baseball bats. The standards call for 3 board-feet of wood at $1.40 per board-foot, and 45 minutes of work at $12 per hour. Total manufacturing overhead costs were estimated at $5,250, of which the variable portion was $0.50 per bat and the fixed portion was $0.75 per bat with an estimate of 4,200 bats to be produced (normal production).

During March, the company had the following results:

Direct labor used = 3,200 hours at a cost of $37,760

Actual manufacturing overhead fixed costs = $2,900

Actual manufacturing overhead variable costs = $2,200

Bats produced = 4,000

Instructions

Compute the following variances for March.

1. Labor rate variance

2. Labor quantity variance

3. Overhead controllable variance

4. Overhead volume variance