Problem 25-1A

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

Direct materials1 pound plastic at $8 per pound		$ 8.00
Direct labor1.00 hours at $11.90 per hour		11.90
Variable manufacturing overhead		5.50
Fixed manufacturing overhead		10.50
Total standard cost per unit		$35.90

The predetermined manufacturing overhead rate is $16 per direct labor hour ($16.00 1.00). It was computed from a master manufacturing overhead budget based on normal production of 5,600 direct labor hours (5,600 units) for the month. The master budget showed total variable costs of $30,800 ($5.50 per hour) and total fixed overhead costs of $58,800 ($10.50 per hour). Actual costs for October in producing 4,300 units were as follows.

Direct materials (4,400 pounds)		$ 36,080
Direct labor (4,160 hours)		50,752
Variable overhead		49,534
Fixed overhead		21,066
Total manufacturing costs		$157,432

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. (Round answers to 0 decimal places, e.g. 125.)

Total materials variance		$		Neither favorable nor unfavorableFavorableUnfavorable
Materials price variance		$		UnfavorableFavorableNeither favorable nor unfavorable
Materials quantity variance		$		Neither favorable nor unfavorableFavorableUnfavorable
Total labor variance		$		FavorableNeither favorable nor unfavorableUnfavorable
Labor price variance		$		UnfavorableFavorableNeither favorable nor unfavorable
Labor quantity variance		$		Neither favorable nor unfavorableFavorableUnfavorable

(b) Compute the total overhead variance.

Total overhead variance

$

UnfavorableNeither favorable nor unfavorableFavorable