Problem 24-01A

Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below.

Direct materials1pound plastic at $6.00per pound$6.00Direct labor0.5hours at $11.90per hour5.95Variable manufacturing overhead3.00Fixed manufacturing overhead5.00Total standard cost per unit$19.95

The predetermined manufacturing overhead rate is $16.00per direct labor hour ($8.000.5). It was computed from a master manufacturing overhead budget based on normal production of2,600direct labor hours (5,200units) for the month. The master budget showed total variable costs of $15,600($6.00per hour) and total fixed overhead costs of $26,000($10.00per hour). Actual costs for October in producing3,000units were as follows.

Direct materials (3,190pounds)$19,459Direct labor (1,390hours)17,097Variable overhead18,238Fixed overhead7,562Total manufacturing costs$62,356

The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.

(a)

Compute all of the materials and labor variances.

Total materials variance $enter a dollar amount

select an option

Neither favorable nor unfavorable

Favorable

Unfavorable

Materials price variance $enter a dollar amount

select an option

Unfavorable

Favorable

Neither favorable nor unfavorable

Materials quantity variance $enter a dollar amount

select an option

Unfavorable

Favorable

Neither favorable nor unfavorable

Total labor variance $enter a dollar amount

select an option

Favorable

Neither favorable nor unfavorable

Unfavorable

Labor price variance $enter a dollar amount

select an option

Favorable

Neither favorable nor unfavorable

Unfavorable

Labor quantity variance $enter a dollar amount

select an option

Favorable

Unfavorable

Neither favorable nor unfavorable

(b)

Compute the total overhead variance.

Total overhead variance $enter the total overhead variance in dollars

select an option

Favorable

Unfavorable

Neither favorable nor unfavorable