Hite Company has developed the following standard costs for its product for 2009:

The company expected to produce 25,000 units of Product A in 2009 and work 75,000 direct labor hours.

Actual results for 2009 are as follows:

• 26,000 units of Product A were produced.
• Actual direct labor costs were $630,800 for 76,000 direct labor hours worked.
• Actual direct materials purchased and used during the year cost $283,500 for 105,000 pounds.
• Actual variable overhead incurred was $130,000 and actual fixed overhead incurred was $170,000.

  Instructions: Compute the following variances showing all computations to support your answers. Clearly indicate whether the variances are favorable or unfavorable. Show your work.

HITE COMPANY Standard Cost Card

Product A

Cost Element

Standard Quality

x Standard Price

= Standard

Direct materials

4 pounds

$3

$12

Direct labor

3 hours

8

24

Manufacturing overhead

3 hours

4

12

$48

1. Materials quantity variance.
2. Total direct labor variance.
3. Direct labor quantity variance.
4. Direct materials price variance.
5. Total overhead variance.