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Xavier Company produces a single product. Variable manufacturing overhead is applied to products on the basis of direct labor - hours. The standard costs for

Xavier Company produces a single product. Variable manufacturing overhead is applied to products on

the basis of direct labor

-

hours. The standard costs for one unit of product are as follows:

Direct

material: 6 ounces at $0.50 per ounce . . . . . . . . . . . . . . . . . . $3

Direct labor: 1.8 hours at $10 per hour . . . . . . . . . . . . . . . . . . . . . . . 18

Variable manufacturing overhead: 1.8 hours at $5 per hour . . . . . . . 9

Total standard v

ariable cost per unit . . . . . . . . . . . . . . . . . . . . . . . . . $30

During June, 2,000 units were produced. The costs associated with June's operations were as

follows:

Material purchased: 18,000 ounces at $0.60 per ounce . . . . . . . $10,800

Ma

terial used in production: 14,000 ounces . . . . . . . . . . . . . . . . .

Direct labor: 4,000 hours at $9.75 per hour . . . . . . . . . . . . . . . . . $39,000

Variable manufacturing overhead costs incurred . . . . . . . . . . . . . $20,800

Required:

Compute the direct materials, direct labor, and variable manufacturing overhead variances.

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