Harlow Parts produces a single product at its Superior Plant. The master budget for July follows:

Harlow Parts

Superior Plant

Master Budget

$($For July$)$

Quantity $9,100$

Revenue $ $1,575,000$

Variable manufacturing cost $780,325$

Variable Selling, General and Administrative cost $98,200$

Contribution margin $ $696,475$

Fixed manufacturing cost $218,400$

Fixed Selling, General and Administrative cost $328,000$

Operating profit $ $150,075$

The following operating income statement shows the actual results for July:

Harlow Parts

Superior Plant

Operating Results

$($For July$)$

Quantity $($units$)10,500$

Revenue $ $1,732,800$

Variable manufacturing cost $952,140$

Variable Selling, General and Administrative cost $111,240$

Contribution margin $ $669,420$

Fixed manufacturing cost $226,800$

Fixed Selling, General and Administrative cost $338,000$

Operating profit $ $104,620$

Variable overhead is applied on the basis of machine$-$hours. The standard cost sheet follows:

Standard production costs

Direct materials $5\mathrm{.}00$ kilo grams @ $ $6\mathrm{.}55$ $ $32\mathrm{.}750$

Direct labor $0\mathrm{.}50$ direct labor$-$hours @ $35\mathrm{.}5017\mathrm{.}750$

Variable overhead $0\mathrm{.}75$ machine$-$hours @ $47\mathrm{.}0035\mathrm{.}250$

Fixed overhead $0\mathrm{.}50$ direct labor$-$hours @ $48\mathrm{.}0024\mathrm{.}000$

Total unit cost $ $109\mathrm{.}750$

The actual resource usage for July per unit of output follows:

Actual production costs

Direct materials $5\mathrm{.}80$ kilo grams @ $ $5\mathrm{.}80$ $ $33\mathrm{.}64$

Direct labor $0\mathrm{.}48$ direct labor$-$hours @ $43\mathrm{.}0020\mathrm{.}64$

Variable overhead $0\mathrm{.}70$ machine$-$hours @ $52\mathrm{.}0036\mathrm{.}40$

Fixed overhead $0\mathrm{.}48$ direct labor$-$hours @ $45\mathrm{.}0021\mathrm{.}60$

Total unit cost $ $112\mathrm{.}28$

Required:

Prepare a manufacturing cost variance analysis for the Superior Plant for July.