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). Modify the PRIMEVAR3 worksheet to compute all appropriate overhead variances. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet.

Hint: Insert several new rows in the Data Section and in the Answer Section.

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