The Marx Company produces rubber seals used in the aerospace industry. Standards call for 3 pounds of material at $2.50 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 137,200 seals with fixed overhead of $137,200 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 387,700 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 $823,000.

1) Determine the standard cost per seal.(Round answer to 2 decimal places, e.g. 15.25.)

Standard cost per seal $......

2)Calculate the material, labor, and overhead variances.(Round intermediate calculations to 2 decimal places, e.g. 14.37 and final answers to 0 decimal places, e.g. 125. Enter all variances as a positive number.)

Material Price Variance $.... FavorableNeither Unfavorable nor FavorableUnfavorable

Material Quantity Variance $. .... FavorableNeither Unfavorable nor FavorableUnfavorable

Labor Rate Variance. $.... Neither Unfavorable nor FavorableFavorableUnfavorable

Labor Efficiency Variance $ ...... UnfavorableFavorableNeither Unfavorable nor Favorable

Controllable Overhead Variance $ ...... Neither Unfavorable nor FavorableUnfavorableFavorable

Overhead Volume Variance. $..... UnfavorableNeither Unfavorable nor FavorableFavorable

3)Prepare a variance summary.(Enter unfavorable variances using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Material Price Variance $....

Material Quantity Variance .........

Labor Rate Variance ..........

Labor Efficiency Variance. .........

Controllable Overhead Variance. .......

Overhead Volume Variance. ........

__________________________

Total $............

4)Indicate which variances should be investigated.

Need to be investigated

Material Price Variance YesNo

Material Quantity Variance YesNo

Labor Rate Variance YesNo

Labor Efficiency Variance. YesNo

Controllable Overhead VarianceYesNo

Overhead Volume Variance YesNo