The following information is for the standard and actual costs for the Happy Corporation: Enter favorable variances as negative numbers.

Standard Costs:

Budgeted units of production - 16,000 [80% (or normal) capacity]

Standard labor hours per unit - 4

Standard labor rate - $26 per hour

Standard material per unit - 8 lbs.

Standard material cost - $12 per pound

Standard variable overhead rate - $15 per labor hour

Budgeted fixed overhead - $640,000

Fixed overhead rate is based on budgeted labor hours at 80% (or normal) capacity.

Actual Cost:

Actual production - 16,500 units

Actual material purchased and used - 130,000 pounds

Actual total material cost - $1,600,000

Actual labor - 65,000 hours

Actual total labor costs - $1,700,000

Actual variable overhead - $1,000,000

Actual fixed overhead - $640,000

a. Determine the following:

Direct materials:

Quantity variance:	$	Unfavorable or favorable?
Price variance:	$	Unfavorable or favorable?
Total cost variance:	$.	Unfavorable or favorable?

b. Determine the following:

Direct labor:

Time variance:	$	Unfavorable or favorable?
Rate variance:	$	Unfavorable or favorable?
Total cost variance:	$	Unfavorable or favorable?

c. Determine the following:

Factory overhead:

Volume variance:	$	Unfavorable or favorable?
Controllable variance:	$	Unfavorable or favorable?
Total cost variance $ unfavorable or favorable?