UBZ produces a single product. Variable manufacturing overhead is applied to

products on the basis of direct labour hours. The standard costs for one unit of product

are as follows:

Direct material: 6 grams at 0.50 per gram 3

Direct labour: 1.8 hours at 10 per hour 18

Variable Manufacturing overhead: 1.8 hours at $5 per hour 9

Total variable cost per unit 30

During June, 2000 units were produced. The costs associated with Junes operations

were as follows:

Material purchased: 18,000 grams at 0.60 per gram 10,800

Material used in production: 14,000 grams -

Direct labour: 4,000 hours at 9.75 per hour 39,000

Variable manufacturing overhead costs incurred 20,800

Required:

Compute the materials, labour and variable manufacturing overhead variances.