Question: The standard costs and variances for direct materials, direct labor, and factory overhead for the month of May are as follows:
Variances
Standard Cost Unfavorable Favorable
Direct materials . . . . . . . . . . . . . . . . . . . . . . . . $ 85,000
Price variance . . . . . . . . . . . . . . . . . . . . . . . $5,000
Quantity variance . . . . . . . . . . . . . . . . . . . . . $3,000
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000
Rate variance . . . . . . . . . . . . . . . . . . . . . . . . 2,700
Efficiency variance . . . . . . . . . . . . . . . . . . . . 6,200
Manufacturing overhead . . . . . . . . . . . . . . . . . 300,000
Spending variance . . . . . . . . . . . . . . . . . . . . 4,000
Volume variance . . . . . . . . . . . . . . . . . . . . . . 5,000
Determine the actual costs incurred during the month of May for direct materials, direct labor, and manufacturing overhead.