Crenshaw Manufacturing, Inc. planned to produce 25,000 units of its only product during the year. The standard cost data for this product are as follows: Direct materials (3 lb. @ $2 per lb.) Direct labor (0.5 hr. @ $8 per hr.). Variable overhead (0.5 hr. @ $4 per hr.) Total standard cost per unit Per Unit Direct materials (74,000 lb. @ $1.80). Direct labor (13,000 hr. @ $8.10). Variable overhead Total actual cost.. $6 4 2 $12 The actual level of production was 24,000 units, with the following actual total costs incurred: Total Cost $133,200 105,300 50,200 $288,700 Required a. Calculate the variances for materials, labor, and variable overhead. b. Is the difference between total actual cost and total standard cost equal to the sum of all the variances? Why?

Crenshaw Manufacturing, Inc. planned to produce 25,000 units of its only product during the year. The standar cost data for this product are as follows: The actual level of production was 24,000 units, with the following actual total costs incurred: Required a. Calculate the variances for materials, labor, and variable overhead. b. Is the difference between total actual cost and total standard cost equal to the sum of all the variances? Why