Variances, Total Overhead Variances, and Variance Reconciliation Sanchez Company planned to produce 12,000 units of its only product during the year. Sanchez established the following standard cost data for this product prior to the beginning of the year: Per Unit Direct materials (2.2 lbs. @ $7.70 per lb.) $16.94 Direct labor (1.7 hrs. @ 13.80 per hr.) Variable overhead (1.7 hrs. @ 6.10 per hr.) 23.46 10.37 $50.77 $158,400 Total standard cost per unit Total budgeted fixed overhead Assume that Sanchez (1) actually produced 11,000 units, (2) used 19,000 pounds of direct materials in production, (3) and incurred the following actual total costs: Direct materials purchased (21,000 lbs. @ $8.00 per lb.) Direct labor (19,000 hrs. @ 13.65 per hr.) Variable overhead Fixed overhead Total Cost $168,000 $259,350 $88,275 $158,400 $674,025 Total actual costs Calculate the following variances. Enter all amounts as positive numbers, rounded to the nearest dollar, and identify the variances as favorable or unfavorable: Materials price variance Amount $ 0 Unfavorable = Materials efficiency variance $ 0 Favorable = Labor rate variance $ 0 Favorable Labor efficiency variance $ 0 Unfavorable Variable overhead spending variance $ Variable overhead efficiency variance $ 0 Unfavorable 0 Favorable