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Prescott Manufacturing manufactures widgets for distribution. The standard costs for the manufacture of widgets follow: Standard Costs Actual Costs Direct materials 3 lbs. per widget at 31,000 lbs. at $34 $35 per pound per pound Direct labor 2.5 hours per widget 22,500 hours at at $11 per hour $11.80 per hour Factory overhead Variable cost, $24/widget $241,500 variable cost Fixed cost, $40/widget $381,250 fixed cost Budgeted factory overhead was $640,000. Overhead applied is based on widgets produced. The company estimated that 10,000 widgets would be produced; however, only 9,600 were produced. Calculate the following amounts. Identify whether the variance is favorable or unfavorable? 1. Rate at which total factory overhead is applied $ per widget 2. Materials price variance 3. Total materials variance 4. Overhead volume variance 5. Overhead controllable variance Activate Windows 49 Go to PC settings to activate Windows