Stromski Corporation manufactures a single product. The standard cost per unit of product is shown below.
- Direct materials-1 pound plastic at $7.00 per pound $ 7.00
- Direct labor-1.5 hours at $12.00 per hour 18.00
- Variable manufacturing overhead 11.25
- Fixed manufacturing overhead 3.75
- Total standard cost per unit $40.00
The predetermined manufacturing overhead rate is $10 per direct labor hour ($15.00 ÷ 1.5). It was computed from a master manufacturing overhead budget based on normal production of 7,500 direct labor hours (5,000 units) for the month. The master budget showed total variable costs of $56,250 ($7.50 per hour) and total fixed overhead costs of $18,750 ($2.50 per hour). Actual costs for October in producing 4,900 units were as follows.
- Direct materials (5,100 pounds) $ 37,230
- Direct labor (7,000 hours) 87,500
- Variable overhead 56,170
- Fixed overhead 19,680
- Total manufacturing costs $200,580
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.
- Compute all of the materials and labor variances. (Round intermediate calculations to 2 decimal places, e.g. 12.50 and final answers to 0 decimal places, e.g. 125.)
- Total materials variance $
- Materials price variance $
- Materials quantity variance $
- Total labor variance $
- Labor price variance $
- Labor quantity variance $
Compute the total overhead variance.