Filano Corp. has the following standards for one unit of product:

Direct material: 80 pounds x $6 $480 Direct labor: 3 hrs x 16 per hour $48 Variable overhead: 1.5 hrs of machine time x $50 per hr $75 Fixed overhead: 1.5 hrs of machine time x $30 per hr $45

The predetermined OH rates were developed using a practical capacity of 6,000 units per yeae. Production is assumed to occur evenly throughout the year.

During May 2010, the company produced 525 units. Actual data for May 2010 are as follows:

Direct Material purchased: 45,000 pounds x $5.92 per pound Direct Material used: 43,020 pounds (all from May's purchases) Total labor cost: $24,955 for 1,550 hrs Variable overhead incurred: $43,750 for 800 hrs of machine time Fixed overhead incurred: $22,800 for 800 hrs of machine time

Required: a. Calculate the following:

1. Material price variance based on purchases 2. Material quantity variance 3. Labor rate variance 4. Labor efficiency variance 5. Variable overhead spending and efficiency variances 6. Fixed overhead spending and volume variances 7. Overhead variances using a three-variance approach 8. Overhead variances using a two-variance approach 9. Overhead variances using a one-variance approach

b.) Record the entries to recognize the variances.