Withers Company uses a standard process costing system in its one production department. Material A is added at the beginning of the process, and Material B is added when the units are 90% complete. Inspection takes place at the end of the process, and all spoilage is expected to be abnormal. The standard cost of abnormal spoilage is charged to a current period expense account. Normal capacity is 7,800 direct labor hours per month. The standard cost per unit is as follows:

Additional data for January are as follows:
(a) Beginning work in process inventory, 3,000 units (33-1/3% converted)
(b) Started in process during the month, 11,000 units
(c) Finished during the month, 8,000 units
(d) Ending work in process inventory, 5,000 units (40% converted)
(e) Actual costs incurred are as follows:

Required:
(1) Compute the January equivalent production for Material A, Material B, and for conversion costs.
(2) Compute the materials price usage and quantity variances for each kind of material, the labor rate and efficiency variances, and the factory overhead controllable and volume variances. Indicate whether the variances are favorable or unfavorable.

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Material A: 4 gallons at $1.20 Material B: 2 square feet at $.70 Direct labor: 1 hour at $11.50.. Variable factory overhead: 1 hour at $1.80.uutn Fixed factory overhead: 1 hour at $5.0 4.80 1.40 11.50 1.80 5.00 $24.50 Total Material A used50,000 gallons at $1.00 Material B used18,000 sq. ft. at $.75 Direct labor Factory overhead.$60,100