Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. $7.00 19.20 Direct materials -1 pound plastic at $7.00 per pound Direct labor-1.6 hours at $12.00 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit 12.00 4.00 $42.20 The predetermined manufacturing overhead rate is $10 per direct labor hour ($16.00 + 1.6). It was computed from a master manufacturing overhead budget based on normal production of 8,000 direct labor hours (5,000 units) for the month. The master budget showed total variable costs of $60,000 ($7.50 per hour) and total fixed overhead costs of $20.000 ($2.50 per hour). Actual costs for October in producing 4,800 units were as follows. $36,720 Direct materials (5,100 pounds) Direct labor (7,400 hours) Variable overhead 92,500 59.700 Fixed overhead 21.000 Total manufacturing costs $209.920 Question 12 of 13 1.29/3 *** Total manufacturing costs $209,920 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 $ 2.350 Unfavorable Materials price variance 1.975 Unfavorable Materials quantity variance 375 Unfavorable 3.500 Favorable Total labor variance Unfavorable Labor price variance 4.200 Favorable Labor quantity variance Question 12 of 13 1.29 Materials quantity variance $ 375 Unfavorable Total labor variance 3,500 Favorable Labor price variance $ Unfavorable Labor quantity variance UA 4,200 Favorable (b) Compute the total overhead variance. $ 2.350 Total overhead variance Unfavorable eTextbook and Media Solution Attempts: 2 of 30 Save for Later