Question

Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below.

Direct materials—1 pound plastic at $8 per pound		$ 8.00
Direct labor—1.00 hours at $11.30 per hour		11.30
Variable manufacturing overhead		7.00
Fixed manufacturing overhead		7.00
Total standard cost per unit		$33.30

The predetermined manufacturing overhead rate is $14 per direct labor hour ($14.00 ÷ 1.00). It was computed from a master manufacturing overhead budget based on normal production of 5,400 direct labor hours (5,400 units) for the month. The master budget showed total variable costs of $37,800 ($7.00 per hour) and total fixed overhead costs of $37,800 ($7.00 per hour). Actual costs for October in producing 3,000 units were as follows.

Direct materials (3,120 pounds)		$ 25,272
Direct labor (2,850 hours)		32,775
Variable overhead		31,918
Fixed overhead		12,182
Total manufacturing costs		$102,147

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.

(a)

Compute all of the materials and labor variances. (Round answers to 0 decimal places, e.g. 125.)

(b)

Compute the total overhead variance.

Answer 1