Direct Materials, 2 feet at $8.45 per foot...$16.90

Direct Labor, 1.4 direct labor hours at $16 per direct labor hour..................22.40

Variable over head. 1.4 direct labor hours at $2.50 per direct labor hour.......3.50

Fixed over head, 1.4 direct labor hours at $6 per direct labor hour...8.40

Standard Cost per UnitTotal..$51.20

Company manufactured 30,000 units during year.

Total of 64,000 feet of material was purchased during the year at $8.55 per foot.

Company worked 43,500 direct labor hours, during the year at direct labor cost of $15.80 per hour.

Denominator Activity level( direct labor hours) ..35,000

Budgeted fixed over head cost$210,000

Actual variable over head cost incurred.$108,000

Actual fixed over head cost incurred$211,800

b. Fixed overhead budget and volume variances:

Actual Fixed Overhead

Budgeted Fixed Overhead

Fixed Overhead Applied to Work in Process

$xxx,800

$xxx,000*

xx,000 DLHs $6 per DLH

= $xxx,000

Budget Variance = $1,xxx U

Volume Variance = $xx,000 F

Tip: *As originally budgeted. This figure can also be expressed as: 35,000 denominator DLHs $6 per DLH = $xxx,000.