Medex Pharmaceutical developed the following standard costs for its product in 2020:

Standard Cost CardUnit Standard Cost

Direct materials1.2 pounds @ $2 per pound$ 2.40

Direct labor0.25 hour @ $12 per hour3.00

Manufacturing overhead

Variable0.4 hours @ $3 per hour1.20

Fixed0.5 hours @ $4 per hour2.00

$8.60

The company planned to work 2,725 direct labor hours and planned to produce 10,900 units of product in 2020. Actual results for 2020 are as follows:

• 11,000 units of product were produced.
• Actual direct materials purchased and used during the year amounted to 13,750 pounds at a cost of $28,875.
• Actual direct labor costs were $33,320 for 2,800 direct labor hours worked.
• Total actual manufacturing overhead incurred amounted to $35,740.

Instructions

Calculate the following variances showing all computations supporting your answers. Indicate if the variances are favorable (F) or unfavorable (U).

(a)Direct materials price and direct materials quantity variances.

(b)Direct labor price and direct labor quantity variances.

(c)Total overhead variance