Materials, labor, and overhead variancestwo-variance method

Fargo Company manufactures products in batches of 100 units per batch. The company uses a standard cost system and prepares budgets that call for 500 of these batches per period. Fixed overhead is $60,000 per period. The standard costs per batch follow:

Material (80 gallons) $32

Labor (60 hours) 480

Factory overhead 252

Standard cost per batch $764

During the period, 503 batches were manufactured, and the following costs were incurred:

Materials used (40,743 gallons) $15,482.34

Labor (29,677 hours at $865 per hour) 256,706.05

Actual variable overhead 67,080.00

Actual fixed overhead 60,500.00

Required:Calculate the variances for materials, labor, and overhead. For overhead, use the two-variance method. ( Please use the information given about budgeted fixed overhead to compute the variable rate.)