In 2019, there were a total of 7000 jugs sold.

Can you please review my calculations? I am not sure about my calculations for the manufacturing cost variances and if they are favorable or not. Thank you!!

Comprehensive: Master Budgets, Variances, Performance Evaluation
During 2019, Sudsy Soap recorded the following cost data:
Standard Cost Information
		Quantity	Cost
Direct Materials		3	lbs per jug	$2	per lb
Direct Labor		0.30	hours per jug	$12	per hour
Variable MOH		0.30	hours per jug	$12	per hour
Fixed MOH Static Budget Amount:	$ 38,340	0.30	hours per jug	$ 21.00	per hour
Actual Cost Information
Direct Materials		20,700	lbs	$ 2.50	per lb
Direct Labor		2,060	hours	$ 12.40	per hour
Variable MOH		2,060	hours	$ 11.60	per hour
Fixed MOH				$ 36,540
3a. Compute the cost and efficiency variances for direct materials and direct labor.
3b. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances.
3c. Prepare the standard cost income statement for 2019.

3a. Compute the cost and efficiency variances for direct materials and direct labor.
					F/U						F/U
	DM Cost Variance:	10,350	1	U	1	DM Efficient Variance:	600	1	F	1
	DL Cost Variance:	824	1	U	1	DL Efficiency Variance:	480	1	F	1
3b. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances.
					F/U						F/U
	VOH Cost Variance:	824	1	F	1	VOH Efficient Variance:	480	1	F	1
	FOH Cost Variance:	1,800	1	F	1	FOH Volume Variance:	840	*	F	1
3c. Prepare the standard cost income statement for 2019.
Sudsy Days
Standard Cost Income Statement
For the Year Ended December 31, 2019
	Net Sales Revenue @ Standard						$ 585,000	1
	Sales Revenue Variance							$ 45,000	1
	Sales Revenue @ Actual							$ 630,000	1
	COGS @ Standard						$ 130,200	1
	Manufacturing Cost Variances:
	DM Cost Variance					$ (10,350)	*
	DM Efficiency Variance					600	*
	DL Cost Variance					(824)	*
	DL Efficiency Variance					480	*
	VOH Cost Variance					824	*
	VOH Efficiency Variance					480	*
	FOH Cost Variance					1,800	*
	FOH Volume Variance					840	*
	Total Manufacturing Cost Variances					(6,150)	*
	COGS @ Actual cost							131,430	1
	Gross Profit								498,570	1
	S&A Expenses:
	Variable							12,600	1
	Fixed							61,400	74,000	1
	Operating Income							$ 424,570	1