You work in the accounting department of Frobisher Company, a manufacturing company that produces a popular consumer product.You typically prepare the variance analysis report and present it to the management committee for their review. Unfortunately, the accounting system has been down and the information you have is incomplete. However, you want to impress the management committee by preparing the variance analysis on a timely basis.

You recall that manufacturing overhead cost is applied to production on the basis of direct-labour hours and that all of the materials purchased during the period were used in production.The standard costs for production are presented as follows:

Direct materials, 9 kilograms @ $3.00 per kilogram $27.00 Direct labour, 1.2 direct labour hours @ $15.00 per direct labour hour 18.00 Variable manufacturing overhead, 1.2 direct labour hours @5300 per direct labour hour 3.60 Fixed manufacturing overhead, 1.2 direct labour hours @5100 per direct labour hour m m The following table presents the information and analysis that you had generated before the accounting system went down: Total Price or Spending Quantity or Standard Rate or Budget Efciency Volume Cost Variance Variance Variance Variance Direct materials $202,500 $3,450F $4,500U Direct labour $135,000 57,2750 $105000 Variable manufacturing overhead $27,000 $650F Fixed manufacturing overhead $63,000 $250F $7,000U