Refer to Exhibit 14.8 and the accompanying discussion in the text. Calculate the materials usage (quantity) variance for PVC during October 2022.

SCHMIDT MACHINERY COMPANY October 2022 Product XV-1 Units Manufactured: 780 Actual Variable Costs Incurred Direct materials: Aluminum $94,380 PVC 3,630 pounds* at $26 per pound 720 pounds at $41 per pound 3,510 hours at $42 per hour 29,520 $123,900 Direct labor 147,420 40,630 Variable factory overhead Total variable cost of goods manufactured $311,950 Variable selling and administrative expenses 39,000 Total variable costs incurred $350,950 Direct materials: Aluminum $78,000 PVC 31,200 $109,200 780 units x 4 pounds per unit * $25 per pound = 780 units * 1 pound per unit * $40 per pound = 780 units x 5 hours per unit * $40 per hour = 780 units x 5 hours per unit * $12 per hour = Direct labor 156,000 46.800 Variable factory overhead Total standard variable cost of goods manufactured $312,000 Variable selling and administrative expenses 39,000 Total flexible budget variable costs $351,000 Variable Cost Flexible Budget Variances Direct materials: Aluminum $94,380 - $78,000 = $16,380U PVC 1,680F $14,700U 29,520 - 31,200 = 147,420 - 156,000 = Direct labor 8,580F 40,630 - 46,800 = 6,170F Variable factory overhead Variable manufacturing cost flexible budget variance $ 50F Variable selling and administrative aynense variance