Your answer is partially correct.Try again.Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below.

Direct materials1pound plastic at $7per pound$7Direct labor1.6hours at $12per hour19.2Variable manufacturing overhead12Fixed manufacturing overhead4Total standard cost per unit$42.2

The predetermined manufacturing overhead rate is $10per direct labor hour ($161.6). It was computed from a master manufacturing overhead budget based on normal production of8,000direct labor hours (5,000units) for the month. The master budget showed total variable costs of $60,000($7.5per hour) and total fixed overhead costs of $20,000($2.5per hour). Actual costs for October in producing4,800units were as follows.

Direct materials (5,100pounds)$36,720Direct labor (7,400hours)92,500Variable overhead59,700Fixed overhead21,000Total manufacturing costs$209,920

The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.

(a)

Compute all of the materials and labor variances. (Round answers to 0 decimal places, e.g. 125.)

Total materials variance$1475

FavorableNeither favorable nor unfavorableUnfavorable

res_EAT_1315393185051_0_1957846354803089_003_resp_2

Materials price variance$425

Neither favorable nor unfavorableUnfavorableFavorable

res_EAT_1315393185051_0_1957846354803089_009_resp_1

Materials quantity variance$1050

FavorableNeither favorable nor unfavorableUnfavorable

res_EAT_1315393185051_0_1957846354803089_015_resp_1

Total labor variance$50

Neither favorable nor unfavorableUnfavorableFavorable

res_EAT_1315393185051_0_1957846354803089_021_resp_1

Labor price variance$2018

Neither favorable nor unfavorableUnfavorableFavorable

res_EAT_1315393185051_0_1957846354803089_027_resp_1

Labor quantity variance$1968

Neither favorable nor unfavorableFavorableUnfavorable

res_EAT_1315393185051_0_1957846354803089_033_resp_1

(b)

Compute the total overhead variance.

Total overhead variance$2000

Neither favorable nor unfavorableUnfavorableFavorable

res_EAT_1315393185051_0_1957846354803089_039_resp_2

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