Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labour standards for one unit of Zoom follow:

Standard Quantity Standard Price Standard

Cost

or Rate

or Hours

Direct materials 4.10 $1.90 7.79

per kilogram

kilogram

Direct labour 0.40 $ 6.00 2.40

per hour

hour

Variable overhead 0.40 $1.00 per hour 0.40

hour

The budgeted fixed overhead cost is $15,022 per month. The denominator activity level of the allocation base is 1,400 direct labour-hours.

During the most recent month, the following activity was recorded:

1. 10,600 kilograms of material were purchased at a cost of $2.21 per kilogram.
2. All of the material purchased was used to produce 3,500 units of Zoom.
3. A total of 820 hours of direct labour time was recorded at a total labour cost of 9,348.
4. The variable overhead cost was $1,640, and the fixed overhead cost was $27,818.

1. Compute the direct materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 14 points

Materials price variance :

Materials quantity variance:

2. Compute the direct labour rate and efficiency variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 14 points Labour rate variance Labour efficiency variance

Labour efficiency variance:

Labour rate variance

3. Compute the variable overhead spending and efficiency variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Round "Efficiency variance" to 2 decimal places.)

Variable overhead spending variance:

Variable overhead efficiency variances:

4. 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 favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Fixed overhead budget variance:

Fixed overhead volume variance:

5. 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 favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 14 points Total variable overhead variance

Total fixed overhead variance

overapplied or underapplied overheard is :