The SCC Division of the Big-Drug Company uses standard costing to help control their production costs. The divisions main product is a pharmaceutical product that comes in a multi-dose package. The standard variable costs per package are given below:

Direct materials (chemical ingredients 1.0 ounces @$0.88 per ounce)

Direct materials (packaging 1 package piece @$0.39 per package piece)

Direct labor (0.25 hour @ $18.00 per hour) Variable overhead ($2.00 per direct labor hour)

Fixed overhead ($8.00 per direct labor hour)

During the most recent month, 95,000 finished packages of the product were produced. Other salient information follows:

Actual variable overhead $42,760

Actual fixed overhead $198,600

Actual direct labor hours 24,000

Actual direct labor hourly rate $17.90

DM chemicals purchase price $0.980

DM chemicals purchase quantity 115,000

DM packages purchase price $0.41

DM packages purchase quantity 96,000

DM chemicals used 105,000

DM packages used 95,500

Fixed Overhead Budget $200,000

For questions 17-25 compute each of the following variances indicating both the dollar amount and whether the amount is favorable (F) or unfavorable (U). If a variance is zero please input zero for the dollar amount and leave the F and U columns blank. DM= direct materials, DL= direct labor.

		Dollar Amount	F	U
17.	The DM price variance for chemicals
18	The DM efficiency (quantity) variance for chemicals
19.	The DM price variance for packaging
20.	The DM efficiency (quantity) variance for packaging
21.	The DL rate variance
22.	The DL efficiency variance
23.	The variable overhead spending variance
24.	The variable overhead efficiency variance
25	The fixed overhead spending variance

26. Optional extra credit opportunity- If the fixed overhead is applied based on a rate of $8.00 per direct labor hour, then what is the budgeted fixed overhead base (also called the denominator) quantified in terms of finished packages?