Perez Manufacturing Company produces a component part of a top secret military communication device. Standard production and cost data for the part, Product X, follow:

Planned production		22,000	units
Per unit direct materials		2.90	pounds	@	$	1.70	per pound
Per unit direct labor		2.70	hours	@	$	8.40	per hour
Total estimated fixed overhead costs	$	495,000

Perez purchased and used 67,610 pounds of material at an average cost of $1.74 per pound. Labor usage amounted to 58,090 hours at an average of $8.50 per hour. Actual production amounted to 22,800 units. Actual fixed overhead costs amounted to $522,000. The company completed and sold all inventory for $1,980,000.

Required

Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity.

Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U).

Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours.

Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U).

Calculate the predetermined overhead rate, assuming that Perez uses the number of units as the allocation base.

Calculate the fixed cost spending and volume variances and indicate whether they are favorable (F) or unfavorable (U).

Determine the amount of gross margin Perez would report on the year-end income statement.

Complete this question by entering your answers in the tabs below.

Required A

Required B

Required C

Required D

Required E

Required F

Required G

Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. (Round "Standard price" and "Actual price" to 2 decimal places.)

Materials Variance Information Table
Standard price		per pound
Actual price		per pound
Standard quantity for flexible budget		pounds
Actual quantity used		pounds

Complete this question by entering your answers in the tabs below.

Required A

Required B

Required C

Required D

Required E

Required F

Required G

Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U).(Select "None" if there is no effect (i.e., zero variance). Round "Price variance" to 2 decimal places.)

Price variance		list whether fav or unfav as well
Usage variance		list whether fav or unfav as well

omplete this question by entering your answers in the tabs below.

Required A

Required B

Required C

Required D

Required E

Required F

Required G

Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours. (Round "Standard price" and "Actual price" to 2 decimal places.)

Labor Variance Information Table
Standard price		per hour
Actual price		per hour
Standard hours for flexible budget
Actual hours used

Complete this question by entering your answers in the tabs below.

Required A

Required B

Required C

Required D

Required E

Required F

Required G

Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance). Round "Price variance" to 2 decimal places.)

Price variance
Usage variance

Complete this question by entering your answers in the tabs below.

Required A

Required B

Required C

Required D

Required E

Required F

Required G

Calculate the predetermined overhead rate, assuming that Perez uses the number of units as the allocation base. (Round your answer to 2 decimal places.)

Predetermined overhead rate

per unit

Required D

omplete this question by entering your answers in the tabs below.

Required A

Required B

Required C

Required D

Required E

Required F

Required G

Calculate the fixed cost spending and volume variances and indicate whether they are favorable (F) or unfavorable (U).(Select "None" if there is no effect (i.e., zero variance).)

Spending variance
Volume variance

Complete this question by entering your answers in the tabs below.

Required A

Required B

Required C

Required D

Required E

Required F

Required G

Determine the amount of gross margin Perez would report on the year-end income statement. (Round intermediate calculations to the nearest whole dollar.)

Gross margin