Lily Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $6.00 per pound $6.00 Direct labor-2.00 hours at $11.85 per hour 23.70 12.00 Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit 12.00 $53.70 The predetermined manufacturing overhead rate is $12 per direct labor hour ($24.00 +2.00). It was computed from a master manufacturing overhead budget based on normal production of 11,800 direct labor hours (5,900 units) for the month. The master budget showed total variable costs of $70,800 ($6.00 per hour) and total fixed overhead costs of $70,800 ($6.00 per hour). Actual costs for October in producing 3,700 units were as follows. Direct materials (3,890 pounds) $23,729 Direct labor (7,300 hours) 87,965 Variable overhead 63,934 Fixed overhead 26,966 Total manufacturing costs $202,594 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. (a) Compute all of the materials and labor variances. Total materials variance $ 1529 i Unfavorable Materials price variance $ 389 i Unfavorable Materials quantity variance $ 1140 i Unfavorable Total labor variance Labor price variance 69 12.05 Unfavorable $ 1185 Favorable Labor quantity variance $ 275 Unfavorable (b) Compute the total overhead variance. Total overhead variance $ 2100 i Unfavorable