"Fantastic! Not only did our salespeople do a good job in meeting the sales budget this year, but our production people did a good job in controlling costs as well" said Eric Hogan, president of Pacific Company. Our $18,300 overall manufacturing cost variance is only 1.2% of the $1,536,000 standard cost of products made during the year. That's well within the 3% parameter set by management for acceptable variances. It looks like everyone will be in line for a bonus this year. The company produces and sells a single product. The standard cost card for the product follows: Standard Cost Card-per Unit Direct materials, 2.00 feet at $8.45 per foot $ 16.90 Direct labor, 1.4 direct labor-hours at $16 per direct labor-hour 22.40 Variable overhead, 1.4 direct labor-hours at $2.50 per direct labor-hour 3.50 Fixed overhead, 1.4 direct labor-hours at $6.00 per direct labor-hour 8.40 Standard cost per unit $ 51.20 The following additional information is available for the year just completed: a. The company manufactured 30,000 units of product during the year. b. A total of 64,000 feet of material was purchased during the year at cost of $8.55 per foot. All of this material was used to manufacture the 30,000 units. There were no beginning or ending inventories for the year. C. The company worked 43,500 direct labor-hours during the year at a direct labor cost of $15.80 per hour. d. Overhead is applied to products on the basis of standard direct labor-hours. Data relating to manufacturing overhead costs follow: Denominator activity level (direct labor-hours) 35,000 Budgeted fixed overhead costs $ 210,000 Actual variable overhead costs incurred $ 108,000 Actual fixed overhead costs incurred $ 211,800 MATERIALS PRICE VARIANCE Actual Price per foot $8.55 64,000 Less: Standard price per foot Difference Multiply by: Actual Qty purchased in units Material Price Variance (U) $8.45 $0.10 64,000 $6,400 MATERIALS QUANTITY VARIANCE Actual Quantity Less: Standard Quantity (30,000 units produced * 2 feet required per unit) Difference Multiply by: Standard Price Material Quantity Variance (U) 60,000 4,000 $8.45 $33,800.00 LABOR RATE VARIANCE Actual Rate Less: Standard Rate Difference Actual Hours Labor Rate Variance (6) $15.80 $16.00 ($0.20) 42,500 $8,700 LABOR EFFICIENCY VARIANCE Actual Hours Less: Standard Hours Difference Multiply by: Standard Rate Labor Efficiency Variance (U) 43,500 42,000 1,500 $16 $24,000 VARIABLE OVERHEAD RATE VARIANCE Variable Overhead Efficiency Variance Actual Hours Less: Standard Hours Difference Standard Variable Overhead Rate Variable Overhead Efficiency Variance (U) 43,500 42,000 1,500 $2.50 $3,750.00 FIXED OVERHEAD BUDGET VARIANCE VOLUME VARIANCE Please solve: Variable Overhead Rate Variance Fixed Overhead Budget Variance Volume Variance