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The Hiroole Company produces rubber seals used in the aerospace industry. Standards call for 3 pounds of material at $2.47 per pound for each seal.

The Hiroole Company produces rubber seals used in the aerospace industry. Standards call for 3 pounds of material at $2.47 per pound for each seal. The standard cost for labor is 1.5 hours at $15.00 per hour. Standard overhead is $10.00 per unit. For the year 2018, expected production is 128,600 seals with fixed overhead of $128,600 and variable overhead of $9.00 per seal. During 2018, a total of 125,000 seals were produced. The company purchased 455,000 pounds of material for $1,142,050. Production required 426,200 pounds of material. The cost of direct labor incurred was $2,900,000 with an actual average wage rate of $15.25 per hour. Actual overhead for the year was $974,000. Determine the standard cost per seal. Calculate the material, labor, and overhead variances. Prepare a variance summary. Material Price Variance$ Material Quantity Variance Labor Rate Variance Labor Efficiency Variance Controllable Overhead Variance Overhead Volume Variance Total$ Indicate which variances should be investigated.

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