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Inman Corporation manufactures a single product. The standard cost per unit of product is as follows: Direct materials2 kg of plastic at $5.20 per kilogram $10.40 Direct labour2 hours at $11.25 per hour 22.50 Variable manufacturing overhead 8.55 Fixed manufacturing overhead 5.45 Total standard cost per unit $46.90 The master manufacturing overhead budget for the month based on the normal productive capacity of 20,000 direct labour hours (10,000 units) shows total variable costs of $80,000 ($4 per labour hour) and total fixed costs of $60,000 ($3 per labour hour). Normal production capacity is 20,000 direct hours. Overhead is applied based on direct labour hours. Actual costs for producing 9,760 units in November were as follows: Direct materials (20,500 kg) $104,550 Direct labour (19,520 hours) 223,504 Variable overhead 78,000 Fixed overhead 59,000 Total manufacturing costs $465,054 The purchasing department normally buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.

Calculate all of the materials and labour variances. (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answers to 0 decimal places, e.g. 125.) Total materials variance $ Favourable Unfavourable Neither favourable nor unfavourable Materials price variance $ Neither favourable nor unfavourable Favourable Unfavourable Materials quantity variance $ Unfavourable Neither favourable nor unfavourable Favourable Total labour variance $ Unfavourable Neither favourable nor unfavourable Favourable Labour price variance $ Neither favourable nor unfavourable Favourable Unfavourable Labour quantity variance $ Favourable Neither favourable nor unfavourable Unfavourable

Calculate the total overhead variance. Total overhead variance $ Unfavourable Favourable Neither favourable nor unfavourable

Calculate the overhead budget variance and the overhead volume variance. Overhead budget variance $ UnfavourableFavourableNeither favourable nor unfavourable Overhead volume variance $ Unfavourable Favourable Neither favourable nor unfavourable

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