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Santa Co. produces a number of products, including a small coat for chihuahuas. The firm, which began operations at the beginning of the current year,

Santa Co. produces a number of products, including a small coat for chihuahuas. The firm, which began operations at the beginning of the current year, uses a standard cost system. The standard costs for one coat are provided below:
Direct material (0.5 yd. @ $2.00) $ 1.00
Direct labor (1 hr. @ $15.00) 15.00
Variable overhead (1 hr. @ $2.00) 2.00
Fixed overhead (1 hr. @ $1.00) 1.00
Total: $ 19.00
The $1.00 fixed overhead rate is based on total budgeted fixed overhead costs of $34,000. There were no changes in any inventory accounts during the period. The company produced and sold 70,000 units at the following costs:
Direct materials (36,000 yds.) $70,000
Direct labor (40,000 hrs.) 750,000
Variable factory overhead 69,000
Fixed factory overhead 30,000
1) Compute and label as Favorable (F) or Unfavorable (U) the following flexible budget variances:
a) Direct materials price variance
b) Direct materials usage variance
c) Direct labor price variance
d) Direct labor usage variance

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