If actual costs are greater than standard costs, the variance is

$,$ alternatively, if actual costs are less than standard costs, the variance is

$.$

Direct Materials Cost Variance

Calculating Direct Materials Cost Variance, you can see that the actual costs are

than standard and the actual quantity purchased and used is

than standard. The two variances are combined for a total

direct material cost variance of $fill in the blank $4$b$6$f$160$a$7$f$8$b$05$c$\_6.$

Direct Labor Cost Variance

Calculating Direct Labor Cost Variance, you can see that the actual costs are

than standard and the actual hours are

than standard. The two variances are combined for a total

direct labor cost variance of $fill in the blank $4$b$6$f$160$a$7$f$8$b$05$c$\_10.$

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The illustrations provide the information to complete the problem.

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The standard cost sheet for a product is shown.

Manufacturing Costs

Standard price

Standard Quantity Standard Cost

per unit

Direct materials $$4\mathrm{.}60$ per pound $6\mathrm{.}10$ pounds $ $28\mathrm{.}06$

Direct labor $$12\mathrm{.}20$ per hour $2\mathrm{.}00$ hours $ $24\mathrm{.}40$

Overhead $$2\mathrm{.}30$ per hour $2\mathrm{.}00$ hours $ $4\mathrm{.}60$

$ $57\mathrm{.}06$

The company produced $3,000$ units that required:

$18,800$ pounds of material purchased at $$4\mathrm{.}45$ per pound

$5,910$ hours of labor at an hourly rate of $$12\mathrm{.}60$ per hour

$$ Actual overhead in the period was $$14,200$

Fill in the Budget Performance Report for the period. Some amounts are provided. Round your answers to the nearest dollar. However, do not round your intermediate calculations.

Budget Performance Report

Manufacturing Costs:

$3,000$ units

Actual

Costs

Standard

Costs Variance

$($Favorable$)/$

Unfavorable

Direct materials $$83,660$ $fill in the blank f$937$f$3$f$7$ffeb$055\_1$ $fill in the blank f$937$f$3$f$7$ffeb$055\_2$

Direct labor fill in the blank f$937$f$3$f$7$ffeb$055\_373,200$ fill in the blank f$937$f$3$f$7$ffeb$055\_4$

Overhead $14,200$ fill in the blank f$937$f$3$f$7$ffeb$055\_5$ fill in the blank f$937$f$3$f$7$ffeb$055\_6$

$fill in the blank f$937$f$3$f$7$ffeb$055\_7$ $fill in the blank f$937$f$3$f$7$ffeb$055\_8$ $$1,146$

Split the direct materials cost variance into the materials price varaince and the Direct materials quantity variance. Remember that you want to isolate the price variance from the quantity variance so be sure to use factors that do not overlap. Also remember that the two variances should equal the total direct material cost variance.