The standard cost sheet for a product is shown.

Manufacturing CostsStandard PriceStandard QuantityStandard Cost per Unit

Direct Material$4.60 per pound5.60 pounds$25.76

Direct Labor$11.59 per hour2.10 hours$24.34

Overhead$1.90 per hour2.10 hours$3.99

Total $54.09

The company produced 3,000 units that required:

17,300 pounds of material purchased at $4.45 per pound

6,240 hours of labor at an hourly rate of $11.89 per hour

Actual overhead in the period was $12,270

1. What would the Actual cost of the direct labor be?
2. What would be the favorable/unfavorable variance of the direct materials be?
3. What would be the favorable/unfavorable variance of the direct labor be?
4. What would be the favorable/unfavorable variance of the overhead be?

Direct Materials Cost Variance

Calculating Direct Materials Cost Variance, you can see that the actual costs arehigherthan standard and the actual quantity purchased and used isless

than standard. The two variances are combined for a totalfavorabledirect material cost variance of $._____________________

Direct Labor Cost Variance

Calculating Direct Labor Cost Variance, you can see that the actual costs arehigher

than standard and the actual hours arelessthan standard. The two variances are combined for a totalfavorabledirect labor cost variance of $.________________