Santa Inc. manufactures toys based on the following information.

Santa Inc. manufactures toys based on the following information.

 Standard costs 

 Materials (4 ounces at $4)           $16 

 Direct labor (1 hour per unit)              $7 

 Variable overhead (based on direct labor hours)      $3.50 

 Fixed overhead budget          $16,000  

 Actual results and costs 

 Materials purchased 

            Units                10,000  

            Cost               $38,500

 Materials used in production 

           Finished product units        2,200  

           Raw material (ounces)        9,500  

           Direct labor hours               2,200  

           Direct labor cost              $18,000  

           Variable overhead costs    $8,400  

           Fixed overhead costs        $16,200  

Required:

Compute the following variances (show calculations).

A.  Materials usage variance 

B.  Labor rate variance 

C.  Fixed overhead budget variance