=+GulfCoast Resins Company processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 2,600 units of product were as follows:

Direct materials Direct labor Factory overhead 6,850 Standard pounds Costs_ at $6.40 2,050 hours at $19.80 Rates per direct labor hour, based on 100% of normal capacity of 1,950 direct labor hours:

Variable cost, $2.50 Fixed cost, $4.50 Actual 7,000 pounds Costs_ at $6.35 2,100 hours at $20.20

$4,970 variable cost

$8,775 fixed cost