Rapache Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost system. In May 2010, 11,210 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 14,000 direct labor hours. All materials purchased were used.
Cost Element
Standard (per unit)
Actual
Direct materials 10.4 yards at $5.59 per yard $627,075 for 117,650 yards
($5.33 per yard)
Direct labor 1.2 hours at $17.55 per hour $262,486 for 14,320 hours
($18.33 per hour)
Overhead 1.2 hours at $7.80 per hour $63,700 fixed overhead
(fixed $4.55; variable $3.25) $48,100 variable overhead
Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $63,700, and budgeted variable overhead was $35,000.
Compute the total, price, and quantity variances for (1) materials and (2) labor. (Round computations and the final answer to 0 decimal places, i.e. 2,250.)
Total materials variance $ favorable?
Materials price variance $ favorable?
Materials quantity variance $ favorable?
Total labor variance $ favorable?
Labor price variance $ favorable?
Labor quantity variance $ favorable?
Compute the total overhead variance