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Determining Unit Costs, Variance Analysis, and Interpretation Nestl, manufacturer of Purina Dog Chow, produces its product in 500-bag batches. Assume the standard batch consists of 10,000 pounds of direct materials at $0.25 per pound, 16 direct labor hours at $15 per hour, and variable overhead cost (based on machine hours) at the rate of $20 per hour with 10 machine hours per batch. The following variable costs were incurred for the last 500-bag batch produced:

Direct materials	10,250 pounds costing $2,255 were purchased and used
Direct labor	15 hours costing $231
Variable overhead	$215
Machine hours used	9.5 hours

(a) Determine the actual and standard variable costs per bag of dog food produced, separated into direct materials, direct labor, and variable overhead.

Round your answers to three decimal places.

	Actual Cost	Standard Cost
Direct materials	Answer	Answer
Direct labor	Answer	Answer
Variable overhead	Answer	Answer
Total variable costs per bag	Answer	Answer

(b) For the last 500-bag batch, determine the standard cost variances for direct materials, direct labor, and variable overhead.

Round your answers two decimal places.

Materials price variance	Answer	AnswerFU
Materials quantity variance	Answer	AnswerFU
Labor rate variance	Answer	AnswerFU
Labor efficiency variance	Answer	AnswerFU
Variable overhead spending variance	Answer	AnswerFU
Variable overhead efficiency variance	Answer	AnswerFU

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