Fortes Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.

The company has reported the following actual results for the product for April:

Required:

a. Compute the materials price variance for April.

b. Compute the materials quantity variance for April.

c. Compute the labor rate variance for April.

d. Compute the labor efficiency variance for April.

Part B (5 marks)

ABC Company uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of machine hours. The company's condensed flexible budget for manufacturing overhead is given below:

	Per Machine Hour	Machine Hours
		20,000	25,000	30,000
Variable Overhead Costs	$3	$60,000	$75,000	$90,000
Fixed Overhead Costs		$300,000	$300,000	$300,000
Total Overhead Costs		$360,000	$375,000	$390,000

The denominator level of activity is 30,000 machine hours. Standards call for 2.5 machine hours per unit of output. Actual activity and manufacturing overhead costs for the year are given below:

Units Produced	12,800 units
Machine Hours used	31,600 machine hours
Overhead Costs incurred:
Variable Costs	$96,000
Fixed Costs	$297,000

Required:

a) What was the fixed overhead budget variance? (2 marks) b) What was the fixed overhead volume variance? (3 marks)