E H 6 7 G 1 Ranier Corporation manufactures a single product. The standard cost per unit of the product is shown below. 2 3 Direct materials 2.0 kilogram of plastic at $8.00 per kilogram = $16.00 Direct labour 1.5 hours at $15.00 per hour = 22.50 5 Variable MOH 2 hours at Fixed MOH $5.00 per hour 10.00 2 hours at Total standard cost per unit $2.50 per hour = 5.00 3 153.50 The predetermined manufacturing overhead rate is $7.50 per direct labour hour ($15.00/2.0 hours). o The rate was calculated from a master manufacturing overhead budget based on normal production of 20,000 direct labour 1 hours, or 10,000 units for the month. The master budget showed total variable costs of $100,000 and total fixed 2 costs of $50,000 3 Actual costs in October in produ 9,900 units were as follows: 4 Direct materials 10,300 kilograms $733 per kilogram = $75,500 5 Direct labour 14,000 hours at $12.50 per hour = $175,000 16 Variable MOH $112,500 7 Fixed MOH $37,000 B Total manufacturing costs $400,000 The purchasing department normally buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories can therefore be ignored. 1 e Instructions: (a) Calculate all of the materials and labour variances. Total materials variance: M Calculate all of the materials and labour variances Total materials variance: AQ AP SQ X SP X WRITE OUT THE FORMULA ON ENTER NUMERICAL VALUES O 5) Materials price variance: X X Materials quantity variance: x Total labour variance: B Labour price variance: X |Labour quantity variance: X X D. xx b) Calculate the total overhead variance. Total overhead variance. ) C) Calculate the overhead budget variance and the overhead volume variance. Overhead budget variance: D DI + Overhead volume variance: X ( (