1. Variance Analysis with Activity-Based Costing. Assume Mammoth Company uses activity-based costing to allocate variable manufacturing overhead costs to products. The company identified three activities with the following information for last quarter.

   Activity	Standard Rate	Standard Quantity per Unit Produced	Actual Costs	Actual Quantity
   Indirect materials	$2.40 per yard	7 yards per unit	$691,650	265,000 yards
   Product testing	$1.50 per test minute	5 minutes per unit	$301,000	215,000 test minutes
   Indirect labor	$4.50 per direct labor hour	4 hours per unit	$930,000	180,000 direct labor hours

   Required:

   Assume Mammoth Company produced 40,000 units last quarter. Prepare a variance analysis using the format shown in Figure 4.11 Variable Overhead Variance Analysis for Jerrys Ice Cream Using Activity-Based Costing. Clearly label each variance as favorable or unfavorable.