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Based on a standard volume of output of 96,000 units per month, the standard cost of the product manufactured by Sahoe Company consists of:
| Direct materials (0.25 pounds x $8.20 per pound) | $2.05 |
| Direct labor (0.5 hours x $7.50 per hour | $3.75 |
| Variable manufacturing overhead | $2.50 |
| Fixed manufacturing overhead | $1.50 |
| Total | $9.80 |
A total of 25,200 pound of materials was purchased at $8.30 per pound. During July, 98,400 units were produced with the following costs:
| Direct materials used (24,000 pounds at $8.30) | $199,200 |
| Direct labor (50,000 hours at $7.90) | $395,000 |
| Variable manufacturing overhead | $249,000 |
| Fixed manufacturing overhead | $145,000 |
Required:
A. Compute the materials price variance for July.
B. Compute the materials quantity (usage) variance for July.
C. Compute the labor price (rate) variance for July.
D. Compute the labor quantity (efficiency) variance for July.
E. Compute the overhead budget variance for July.
F. Compute the overhead volume variance for July.
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