The standard cost of product 5252 includes 1.9 hours of direct labor at $14.00 per hour. The predetermined overhead rate is $22.00 per direct labor hour. During July, the company incurred 4,000 hours of direct labor at an average rate of $14.30 per hour and $81,300 of manufacturing overhead costs. It produced 2,000 units.

DO IT! 23-3

(a) Compute the total, price, and quantity variances for labor. (b) Compute the total overhead variance.