GrandBlue, your help has been a lifesaver. I have a better understanding of what I'm computing here. This is my latest question...

Hart Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies. Because the company's customers are governmental agencies, prices are strictly regulated. Therefore, Hart Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test.

Direct materials (2test tubes @ $1.40per tube) $2.80

Direct labor (1hour @ $32per hour) 32.00

Variable overhead (1hour @ $6.00per hour) 6.00

Fixed overhead (1hour @ $12.00per hour) 12.00

Total standard cost per test $52.80

The lab does not maintain an inventory of test tubes. As a result, the tubes purchased each month are used that month. Actual activity for the month of November 2020, when1,400tests were conducted, resulted in the following.

Direct materials (2,940test tubes) $3,822

Direct labor (1,456hours) 45,136

Variable overhead 8,316

Fixed overhead 15,792

Monthly budgeted fixed overhead is $17,520. Revenues for the month were $91,000, and selling and administrative expenses were $3,600.

I've computed the price variances for direct materials and direct labor by setting up an Excel spreadsheet (those answers are 294 and 1456 favorable for materials and labor, respectively). In trying to calculate unit variances for materials and labor, I'm stuck. Yes, they're both unfavorable--but I'm doing simple math to determine that the variances are 140 for materials (should have been 2800 but was 2940) and 56 hours for labor (should have been 1400 but was 1456). Those answers are not working. Any guidance you provide would be greatly appreciated!

Tom