"Wonderful! Not only did our salespeople do a good job in meeting the sales budget this year, but our production

people did a good job in controlling costs as well," said Clark Kim, president of Martell Company. "Our $$33,600$

overall manufacturing cost variance is only $1\mathrm{.}5\%$ of the $$2,208,000$ standard cost of products made during the

year. That's well within the $3\%$ parameter set by management for acceptable variances. It looks like everyone will

be in line for a bonus this year."

The company produces and sells a single product. The standard cost card for the product follows.

The following additional information is available for the year just completed:

a$.$ The company manufactured $30,000$ units of product during the year.

b$.$ A total of $64,000$ metres of material was purchased during the year at a cost of $$8\mathrm{.}55$ per metre. All of this

material was used to manufacture the $30,000$ units produced. There were no beginning or ending inventories

for the year.

c$.$ The company worked $43,500$ direct labour$-$hours during the year at a direct labour cost of $$31\mathrm{.}60$ per hour.

d$.$ Overhead is applied to products on the basis of standard direct labour$-$hours. Data relating to manufacturing

overhead costs follow:Budgeted fixed overhead costs $ $ $210,000$

Actual variable overhead costs incurred $ $$108,000$

Actual fixed overhead costs incurred $ $$211,800$At standard, each set of covers should require $5\mathrm{.}6$ metres of material. All of the materials purchased during the

month were used in production.

Required:

Compute the materials price and quantity variances for the year.

Compute the labour rate and efficiency variances for the year.

Computer the variable overhead spending and efficiency variances for the year.

Note: Do not round your intermediate calculations.

Compute the fixed overhead budget and volume variances for the year.

This part of the question is not part of your Connect assignment.

Note: For all requirements, indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for

unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance$).$ Input all amounts as positive values.