Splish Company budgeted the following cost standards for the current year:

Direct materials (2 kg of plastic at $6.00 per kilogram)		$12.00
Direct labour (2 hours at $12 per hour)		24.00
Variable manufacturing overhead		10.05
Fixed manufacturing overhead		6.30
Total standard cost per unit		$52.35

Actual costs for producing 2,730 units were as follows:

Direct materials used		5,980	kg
Direct materials purchased (6,580 kg)		$38,164
Direct labour (6,930 hours)		$67,914
Variable manufacturing costs		$33,000
Fixed manufacturing costs		$17,900

(c)

Calculate the labour price variance. (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answers to 0 decimal places, e.g. 125.)

Labour price variance

$enter the labour price variance in dollars rounded to 0 decimal places

select an option FavourableNeither favourable nor unfavourableUnfavourable

2.

Metlock Company uses a standard cost system. Indirect costs were budgeted at $214,000 plus $14 per direct labour hour. The overhead rate is based on 10,700 hours. Actual results were:

Standard direct labour hours allowed		9,470
Actual direct labour hours		10,700
Fixed overhead		$189,400
Variable overhead		$185,200

(d)

Calculate the over- or underapplied overhead.

Overhead

$enter a dollar amount

select an option over-appliedunder-applied