XO-20 is an oil-based product used to remove rust on bolts and nuts that are stuck. Its accounting system uses standard costs. The standards per 0.5-liter can of solution call for 0.79 liters of material and 4 hours of labor. (0.79 liters of material are needed due to evaporation in the production process.) The standard cost per liter of material is $2.6. The standard cost per hour for labor is $12.30. Overhead is applied at the rate of $15.23 per can. Expected production is 8,400 cans with fixed overhead per year of $27,720 and variable overhead of $11.93 per unit (a 0.5-liter can).

During 2015, 8,090 cans were produced; 12,600 liters of material were purchased at a cost of $53,928; 10,120 liters of material were used in production. The cost of direct labor incurred in 2015 was $358,512, based on an average actual wage rate of $10.67 per hour. Actual overhead for 2015 was $123,000.

A) Determine the Standard Cost per Unit:

B) Calculate Material, Labor, and Overhead variances and state whether it is favorable, unfavorable, or neither.

Material Price Variance:

Material Quantity Variance:

Labor Rate Variance:

Labor Efficiency Variance:

Controllable Overhead Variance:

Overhead Volume Variance: