Determining Unit Costs, Variance Analysis, and Interpretation

Big Dog Company, a manufacturer of dog food, produces its product in $1,000-$bag batches. The standard cost of each batch consists of

$9,000$ pounds of direct materials at $$0\mathrm{.}40$ per pound, $48$ direct labor hours at $$8\mathrm{.}50$ per hour, and variable overhead cost $($based on

machine hours$)$ at the rate of $$10$ per hour with $16$ machine hours per batch. The following variable costs were incurred for the last

$1,000-$bag batch produced:

$($a$)$ Determine the actual and standard variable costs per bag of dog food produced, separated into direct materials, direct labor, and

variable overhead.

Round your answers to three decimal places.

$($b$)$ For the last $1,000-$bag batch, determine the standard cost variances for direct materials, direct labor, and variable overhead.

Round your answers two decimal places.