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Problem 25 See schedule for due date. You may develop your own working paper format (i.e. use the matrix format) or use the working papers

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Problem 25 See schedule for due date. You may develop your own working paper format (i.e. use the matrix format) or use the working papers provided Apache Corporation manufactures a product called EZ-Printer. The standard cost per unit of this product is shown below. Direct materials-2 pounds plastic at $6.00 per pound Direct labor-2 hours at $13.00 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit $ 12.00 26.00 7.00 5.00 $50.00 The predetermined manufacturing overhead rate is $6 per direct labor hour ($12.00 2). It was computed from a master manufacturing overhead budget based on normal production of 20,000 direct labor hours (10,000 units) for the month. The master budget showed total variable costs of S70,000 (S3.50 per labor hour) and total fixed overhead costs of $50,000 ($2.50 per labor hour) Actual costs for October in producing 9,700 printers were as follows Direct materials (20,000 pounds) Direct labor (19,000 hours) Variable overhead Fixed overhead $119,000 256,760 68,800 50,000 Total manufacturing costs $494,560 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 Instructions Compute the following variances for the EZ-Printer product of the Apache Corporation and indicate whether the variance is favorable or unfavorable (F or U). Show all computations or no credit given 1. Total materials variance 2. Direct materials price variance 3. Direct materials quantity variance 4. Total labor variance 5. Direct labor price variance 6. Direct labor quantity variance 7. Total overhead variance

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