The

BazemoreBazemore

Manufacturing Company's costing system has two direct-cost categories: direct materials and direct manufacturing labor. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of standard direct manufacturing labor-hours (DLH). At the beginning of

20172017,

BazemoreBazemore

adopted the following standards for its manufacturing costs:

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.

Requirement 1. Prepare a schedule of total standard manufacturing costs for the

8 comma 0008,000

output units in January

20172017.

Direct materials
Direct manufacturing labor
Manufacturing overhead:
Variable
Fixed
Total

Standards:

	Input	Cost per Output Unit
Direct materials	3 lb. at $7 per lb.		$21.00
Direct manufacturing labor	6 hrs. at $15 per hr.		90.00
Manufacturing overhead:
Variable	$8 per DLH		48.00
Fixed	$10 per DLH		60.00
Standard manufacturing cost per output unit			$219.00

Additional info;

The denominator level for total manufacturing overhead per month in

20172017

is

41 comma 00041,000

direct manufacturing labor-hours.

BazemoreBazemore's

budget for January

20172017

was based on this denominator level. The records for January indicated the following:

Direct materials purchased	27,200 lb. at $6.90 per lb.
Direct materials used	24,200 lb.
Direct manufacturing labor	47,000 hrs. at $14.25 per hr.
Total actual manufacturing overhead (variable and fixed)	$750,000
Actual production	8,000 output units

Requirements;

1.	Prepare a schedule of total standard manufacturing costs for the 8 comma 0008,000 output units in January 20172017.
2.	For the month of January 20172017, compute the following variances, indicating whether each is favorable (F) or unfavorable (U):
	a.	Direct materials price variance, based on purchases
	b.	Direct materials efficiency variance
	c.	Direct manufacturing labor price variance
	d.	Direct manufacturing labor efficiency variance
	e.	Total manufacturing overhead spending variance
	f.	Variable manufacturing overhead efficiency variance
	g.	Production-volume variance