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 1.25 ounces @$1.00 per ounce)

Direct materials (packaging 1 package piece @$0.45 per package piece)

Direct labor (0.40 hour @ $18.00 per hour)

Variable overhead ($1.50 per direct labor hour)

Fixed overhead ($2.00 per direct labor hour)

During the most recent month, 100,000 packages of the product were produced. Other salient information related to the production of the 100,000 packages follows:

Actual variable overhead	$58,000
Actual fixed overhead	$87,000
Actual direct labor hours	40,200
Actual direct labor hourly rate	$17.90
DM chemicals purchase price	$1.01
DM chemicals purchase quantity	140,000
DM packages purchase price	$0.46
DM packages purchase quantity	104,000
DM chemicals used	135,000
DM packages used	102,000
Fixed Overhead Budget	$85,000

Required: 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.

		Dollar Amount	F	U
17.	DM chemical purchase price variance
18.	DM chemical efficiency (quantity) variance
19.	DM packaging purchase price variance
20	DM packaging efficiency (quantity) variance
21	Direct Labor rate variance
22	Direct Labor efficiency variance
23	The variable overhead spending variance
24,	The variable overhead efficiency variance
25.	The fixed overhead spending variance

Optional extra credit opportunity- If the fixed overhead is applied based on a rate of $2.00 per direct labor hour, then what is the budgeted fixed overhead base (also called the denominator) quantified in terms of finished packages?