chtp 26 qu 1

Oriole Corporation manufactures a singje product. The standard cost per unit of product is shown belowe The predetermined manufacturing overhead rate is $14 per direct labor hour ($700+0.50). It was cornputed from a master manulacturing overhead budget based on normal production of 2,500 direct labor houra 15,000 units) for the month. The master budget showed total variable costs of $16.250 (\$6.50 per hour) and total fixed overhead costs cf $18750 i5750 per hour) Actual costs for October in producing 4.400 units were as follows. The purchasing department buys the quantities of raw materias that are expected to be used in production each month. Raw materlals inventories therefore, can be ignored. (a) Compute ali of the materials and labor variances (b) Compute the total overtead varlance Totalpverhead wariance 5