Sunland Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $6.00 per pound Direct labor-1.50 hours at $12.20 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Direct materials (4,500 pounds) Direct labor (6,250 hours) Variable overhead Fixed overhead Total manufacturing costs (a) The predetermined manufacturing overhead rate is $16 per direct labor hour ($24.00=1.50). It was computed from a master manufacturing overhead budget based on normal production of 8,700 direct labor hours (5,800 units) for the month. The master budget showed total variable costs of $52,200 ($6.00 per hour) and total fixed overhead costs of $87,000 ($10.00 per hour). Actual costs for October in producing 4,300 units were as follows. Total materials variance Materials price variance- Materials quantity variance Compute all of the materials and labor variances. Total labor variance Labor price variance Labor quantity variance The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. $ $ $ 67 $ 27,900 77,500 $ 78,430 6A 26,670 $210,500 $6.00 18.30 9.00 15.00 $48.30 > > > >

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Sunland Corporation manufactures a single product. The standard cost per unit of product is shown below: The predetermined manufacturing overhead rate is $16 per direct labor hour ( $24,00=150 ). It was computed from a master marufacturing overhead budget based on normal production of 8,700 dirnct labor hours (5,800 units) for the month The master budget showed total variable costs of $52,200 ( $6,00 per hour) and total fixed overhead costs of $87.000 ( $10,00 per hour). Actual costs for October in producing 4,300 units were as follows: The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Rew materials imventories, therefore can beignored. (a) Total overhead variance