Silicon Inc. has provided the following information for the year ended December 31, Year 1.

	Master Budget				Actual Costs
	5,000 units				4,500 units
Direct materials	$	35,000			$	32,500
Direct labor		15,000				12,500
Variable manufacturing overhead		8,000				7,800
Fixed manufacturing overhead		16,000				17,500
Total manufacturing cost	$	74,000			$	70,300

Knowledge Check 01

What is the direct materials spending variance?

• $1,000 favorable

• $1,000 unfavorable

• $3,500 favorable

• $3,500 unfavorable

Knowledge Check 02

What is the direct labor volume variance?

• $2,500 favorable

• $2,500 unfavorable

• $1,500 favorable

• $1,500 unfavorable

Knowledge Check 03

What is the total variable manufacturing overhead variance?

• $200 favorable

• $200 unfavorable

• $800 favorable

• $800 unfavorable

Knowledge Check 04

What is the fixed manufacturing overhead volume variance?

• $1,600 favorable

• $3,100 unfavorable

• $150 unfavorable

• $0