P-M:6-27A Computing standard cost variances and reporting to management Hear Smart manufactures headphone cases. During September 2024, the company produced and sold 105,000 cases and recorded the following cost data:

Cost Direct Materials 2 parts $0.15 per part

Direct Labor 0.02 hours 10.00 per hour

Variable Manufacturing Overhead 0.02 hours 8.00 per hour

Fixed Manufacturing Overhead, $28,500 for static budget volume of 95,000 units and 1,900 hours, or $15 per hour.

Actual Cost Information

Account Amount Direct Materials, 209,000 parts at $0.20 per part $41,800 Direct Labor, 1,600 hours at $10.10 per hour 14,924 Variable Manufacturing Overhead 9,000 Fixed Manufacturing Overhead 26,000