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Gail Cleaners produces a commercial cleaning compound known as Carpex. The direct materials and direct labour standards for one unit of Carpex follow: The budgeted

Gail Cleaners produces a commercial cleaning compound known as Carpex. The direct materials and direct labour standards for one
unit of Carpex follow:
The budgeted fixed overhead cost is $14,810 per month. The denominator activity level of the allocation base is 1,320 direct labour-
hours.
During the most recent month, the following activity was recorded:
a.10,400 kilograms of material were purchased at a cost of $2.18 per kilogram.
b. All of the material purchased was used to produce 3,300 units of Zoom.
c. A total of 800 hours of direct labour time was recorded at a total labour cost of 8,960.
d. The variable overhead cost was $1,600, and the fixed overhead cost was $26,228.
Required:
Compute the direct materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for
favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Compute the direct labour rate and efficiency variances for the month. (Indicate the effect of each variance by selecting "F" for
favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Compute the variable overhead spending and efficiency variances for the month. (Indicate the effect of each variance by selecting
"F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round "Efficiency variance" to 2 decimal
places.)
Compute the fixed overhead budget and the volume variances for the month. (Round intermediate calculations to the nearest
whole dollar amount. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no
effect (i.e., zero variance).)
Compute the underapplied or overapplied overhead for the month. (Round intermediate calculations and round final answer to 2
decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect
(i.e., zero variance).)
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