Standard cost card for 1 unit of Product A:

Direct materials Raw Material A (1 kilogram @ $ 20/kg.) $ 20

Direct materials Raw Material B (1 kilogram @$ 10/kg.) $ 10

Direct labour (1 hour @ $15/hr.) $ 15

Variable overhead (1 hour @ $ 5/hr.) $ 5

Fixed overhead (1 hour @ $ 10/hr.) $ 10

Total budgeted fixed overhead: $ 1,000

Budget total units of production: 100 units

Actual units produced 88 units

Actual costs incurred: Total

Direct materials Raw Material A (130 kilograms $ 2,860

Direct materials Raw Material B ( 60 kilograms) $ 660

Direct labour (100 hours) $ 1,600

Variable overhead (100 hours) $ 480

Fixed overhead $ 1,120

Required:

Prepare a 5-column analysis, with the columns as follows: Actual, Cost Variances, Flexible Budget, Volume Variance, Master Budget

Calculate the direct labour variances.

Calculate the two variable overhead variances.

Calculate the direct material variances..