Mastery Problem: Manufacturing Cost Variance [Actual Costs Compared to Standard Costs) Manufacturing cost variances may.r come from material costs that are higher or lower than expected, material usage that is not what was expected, higher or lower labor costs than expectedr or more or less time spent to produce an item than expected. Overhead cost and volume variances are another cause for costs to be higher or lower than what was expected. The total manufacturing variance can be broken down by cost type (materials, labor, overhead] and further by cost variances within cost types and usage or efciency.r variances within cost types: Total Manufacturing Cost Variance Direct Materials Cost Variance Direct Labor Cost Variance Factor\"; Overhead Cost Variance The standard cost sheet for a product is shown. Standard Cost Manufacturing Costs Standard price Standard Quantity per unit Direct materials $4.40 per pound 5.50 pounds $ 24.20 Direct labor $11.84 per hour 2.40 hours $ 28.42 Overhead $2.00 per hour 2.40 hours 4.80 $ 57.42 The company produced 3,000 units that required: . 17,000 pounds of material purchased at $4.25 per pound . 7,120 hours of labor at an hourly rate of $12.24 per hour . Actual overhead in the period was $14,790Fill 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 Variance Manufacturing Costs: Actual Standard (Favorable)/ 3,000 units Costs Costs Unfavorable Direct materials $72,250 X $ Direct labor 85,248 Overhead 14,790 $1,941