Pharoah Manufacturing Company uses a standard cost system in accounting for the cost of its main product. The following standards

have been established for the direct manufacturing costs per unit:

Budgeted overhead for the month of April $($based on expected activity of $10,800$ direct labour hours$)$ is as follows:

Overhead is applied based on labour hours. The average activity per month is $11,700$ direct labour hours. The company calculates

overhead rates based on average activity. Results for the month of April are as follows:

There was no beginning or ending work in process inventory.

$($a$)$

Calculate the direct materials price, usage, and budget variances.

Direct materials price variance

Direct materials usage variance

Total materials budget variancePharoah Manufacturing Company uses a standard cost system in accounting for the cost of its main product. The following standards

have been established for the direct manufacturing costs per unit:

Direct materials $(2$ kg at $$7\mathrm{.}50$ per kilogram$)$ $$15\mathrm{.}00$ per unit

Direct labour $(3$ hours at $$12$ per hour $)$ $$36\mathrm{.}00$ per unit

Budgeted overhead for the month of April $($based on expected activity of $10,800$ direct labour hours$)$ is as follows:

Variable overhead $$35,100$

Fixed overhead $23,400$

Total overhead $$58,500$

Overhead is applied based on labour hours. The average activity per month is $11,700$ direct labour hours. The company calculates overhead rates based on average activity. Results for the month of April are as follows:

Units produced $3,780$

Direct materials used $(7800$ kg$)$ $$53820$

Direct labour $(11400$ hours$)139650$

Variable overhead $34,200$

Fixed overhead $24000$

Total costs $$251,670$

There was no beginning or ending work in process inventory.

$($a$)$

Calculate the direct materials price, usage, and budget variances.

Direct materials price variance

Direct materials usage variance

Total materials budget variance