Standard costs and actual cost for direct materials, direct labor, and factory overhead incurred for the manufacture of 2,000 units of product were as follows:

Standard Costs Actual Costs

Direct materials 2,000 pounds at $12.50 1,940 pounds at $12.80

Direct labor 8,000 hours at $14 8,180 hours at $15

Factory overhead Rates per machine hour,

Based on 100% of normal

Capacity of 10,000

machine hours;

Variable cost, $1.80 $15,200 variable cost

Fixed cost, $2.50 $25,000 fixed cost