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The standard cost card for a single unit of Robinson, Incorporated's products is shown below.
| | Standard Quantity | Standard Price/Rate | Standard Unit Cost |
| Direct materials: | 2.5 | yards @ | $ 8.00 | per yard | $ 20.00 |
| Direct labor: | 0.5 | hours @ | $ 18.00 | per hour | 9.00 |
| Variable overhead (based on labor hours): | 0.5 | hours @ | $ 10.00 | per hour | 5.00 |
| Budgeted production for the month | 14,000 | units |
| Actual production for the month | 13,500 | units |
| Actual Costs Incurred to Produce 13,500 units: | Standard Quantity | Standard Price/Rate | Total Actual Cost |
| Direct Materials Purchased and Used | 35,100 | yards @ | $ 7.00 | per yard | $2,45,700 |
| Direct Labor Paid | 7,425 | hours @ | $ 17.50 | per hour | $1,29,938 |
| Variable Overhead Incurred | 7,425 | hours @ | $ 12.00 | per hour | $ 89,100 |
1. Compute the direct material, direct labor and variable overhead variances.
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