Worksheet. McGrade Industries also has the following information regarding overhead for October: actual overhead $375,000, standard variable overhead of $3 per direct labor hour, and standard fixed overhead of $5 per direct labor hour (based on 47,000 hours budgeted).

PRIMEVAR Material and Labor Variances Data Section Materials price variance input Actual cost of material per pound (ounce, etc.) Standard cost of mat. per pound (ounce, etc.) $15.90 $16.00 Materials quantity variance input Actual quantity of materials used Standard quantity of mat. used for actual output 39,500 38,000 Labor rate variance input Actual cost of labor per hour Standard cost of labor per hour $8.05 $8.00 Labor efficiency variance input Actual quantity of hours incurred Standard quantity of hours for actual output 44,000 45,600 Answer Section For U F Material price variance Material quantity variance ($3,950) 24,000 Total materials variance $20,050 U Labor rate variance Labor efficiency variance $2,200 (12,800) U F TC Total labor variance (10,600) F Total materials and labor variances $9,450 U