Variances required:

a.

labour rate

labour efficiency

materials price

materials usage

b.

variable overhead spending

variable overhead efficiency

c.

fixed overhead budget (spending)

fixed overhead volume

selling and administrative total variance

Linda Ltd manufactures playtons for hydraulic drives, uses a standard cost system and calculates the standard cost of a completed play ton as $148, as follows: Quantity Cost per play ton $60 Play |ton shaft Shaft housing Direct labour 1 1 Price $60/play ton shaft $40/housing $25/hour $40 0.4 hours $10 0.4 hours $20/hour $8 Variable factory overhead Fixed factory overhead Total standard cost 0.4 hours $75/hour $30 $148 The fixed overhead rate is based on an estimated 1000 units manufactured per month. Selling and administrative costs are $50,000 per month plus $10 per play ton sold. The following information is for production during April: 1400 $88,500 1450 $60,000 No. of playtons manufactured and sold Purchase of 1500 play ton shafts No. of play ton shafts used Purchase of 1500 shaft housings No. of shaft housings used Direct labour costs (597 hours) Variable factory overhead costs Fixed factory overhead costs Selling and administrative costs 1400 $15,015 $10,500 $42,325 $118,950