Standards costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 2,500 units of product were as follows:

Standard CostsActual Costs

Direct materials8,000 pounds at $4.507,850 pounds at $4.20

Direct labor5,000 hours at $185,250 hours at $19.00

Factory overheadRates per machine hour,

based on 100% of

normal capacity of

6,000 machine hours:

Variable costs $2.30$11,750 variable cost

Fixed costs, $.90$ 5,400 fixed cost

Two machine hours are required per unit

a. Determine the price variance, quantity variance, and total material cost variance.

b. Determine the time variance, rate variance, and total direct labor cost variance.

PROBLEM V

Using the information in Problem IV

a. Determine the factory overhead controllable variance.

b. Determine the fixed factory overhead volume variance and total factory overhead cost variance