Quilter Company manufactures molded candles that are finished by hand. The company developed the following standards for a new line of drip candles:

Amount of direct materials per candle		1.6	pounds
Price of direct materials per pound	$	0.60
Quantity of labor per unit		1	hour
Price of direct labor per hour	$	8.00	/hour
Total budgeted fixed overhead	$	156,000

During 2010, Quilter planned to produce 30,000 drip candles. Production lagged behind expectations, and it actually produced only 24,000 drip candles. At year-end, direct materials purchased and used amounted to 40,000 pounds at a unit price of $0.54 per pound. Direct labor costs were actually $7.50 per hour and 26,400 actual hours were worked to produce the drip candles. Overhead for the year actually amounted to $132,000. Overhead is applied to products using a predetermined overhead rate based on estimated units.

Compute the standard cost per candle for direct materials, direct labor, and overhead and also the total standard cost for one drip candle. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Cost	Standard cost per unit
Direct material	$
Direct labor
Overhead
Total per candle	$

c.&d.

Compute the actual cost per candle for direct materials, direct labor, and overhead and also the total actual cost per candle. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Cost	Actual cost per unit
Direct materials	$
Direct labor
Overhead
Total per candle	$

e.	Compute the price and usage variances for direct materials and direct labor. Indicate the effect of each variance by selecting "Favorable", "Unfavorable", or "None" (No effect) (i.e., zero variance). (Input all amounts as positive values. Omit the "$" sign in your response.)

Cost	Variance
Direct materials:
Price variance	$	(Click to select) Favorable None Unfavorable
Usage variance	$	(Click to select) Favorable Unfavorable None
Direct labor
Price variance	$	(Click to select) Unfavorable None Favorable
Usage variance	$	(Click to select) Favorable Unfavorable None

f.	Compute the fixed cost spending and volume variances. Indicate the effect of each variance by selecting "Favorable", "Unfavorable", or "None" (No effect) (i.e., zero variance). (Input all amounts as positive values. Omit the "$" sign in your response.)

Fixed MOH cost	Variance
Spending variance	$	(Click to select) None Favorable Unfavorable
Volume variance	$	(Click to select) None Unfavorable Favorable