standard and actual costs

The following information is for the standard and actual costs for the Happy Corporation.

Standard Costs:

Budgeted units of production - 16,000 (80% of capacity)

Standard labor hours per unit - 4

Standard labor rate $26 per hour

Standard material per unit - 8 lbs.

Standard material cost - $ 12 per lb.

Budgeted fixed overhead $640,000

Standard variable overhead rate - $15 per labor hour.

Fixed overhead rate is based on budgeted labor hours at 80% capacity.

Actual Cost:

Actual production - 16,800 units

Actual fixed overhead - $650,000

Actual variable overhead - $1,050,000

Actual labor - 67,000 hours, total labor costs $1,800,000

Actual material purchased and used - 135,000 lbs, total material cost $1,700,000

Actual variable overhead - $1,010,000

Determine: (a) the quantity variance, price variance, and total direct materials cost variance; (b) the time variance, rate variance, and total direct labor cost variance; and (c) the volume variance, controllable variance, and total factory overhead cost variance.

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