Walton Company manufactures molded candles that are finished by hand. The company developed the following standards for a new line of drip candles:

Amount of direct materials per candle		1.80	pounds
Price of direct materials per pound	$	0.70
Quantity of labor per unit		0.80	hours
Price of direct labor per hour	$	7.90	/hour
Total budgeted fixed overhead	$	112,500

During 2017, Walton planned to produce 25,000 drip candles. Production lagged behind expectations, and it actually produced only 20,000 drip candles. At year-end, direct materials purchased and used amounted to 37,700 pounds at a unit price of $0.64 per pound. Direct labor costs were actually $7.30 per hour and 18,900 actual hours were worked to produce the drip candles. Overhead for the year actually amounted to $94,000. Overhead is applied to products using a predetermined overhead rate based on estimated units.

Required

1. a.&b. Compute the standard cost per candle for direct materials, direct labor, overhead and also the total standard cost for one drip candle.

2. c.&d. Compute the actual cost per candle for direct materials, direct labor, overhead and also the total actual cost per candle.

3. e. Compute the price and usage variances for direct materials and direct labor.

4. f. Compute the fixed cost spending and volume variances.

Cost	Standard cost per unit
Direct material
Direct labor
Overhead
Total per candle

Cost	Actual cost per unit
Direct material
Direct labor
Overhead
Total per candle

Cost	Variance
Direct materials:
Price variance
Usage variance
Direct labor:
Price variance
Usage variance

Fixed MOH cost	Variance
Spending variance
Volume variance