Mortimer Co. budgeted for production of 24.500 units for the current period. The following information comes from the company's records for the current period: During the current period, the company produced 25,000 units. Actual costswert. Direct materials.. Direct labor Fixed overhead. Variable overhead 38,000 ft. @ $6.20 50,660 hrs @ $16 $98,300 $105,375 Overhead costs are based on direct labor bours Standard costs and quantities per unit are: Standard costs were: Direct materials (1.5 ft@ $6.10 ft). Direct labor (2 hours @ $17 hr.). Variable overhead (2hrs @ $2.25/ hr.). Fixed overhead (2 hrs a $1.95/hr). Per Unit $9.15 $34.00 $4.50 $3.90 Calculate the direct materials price and quantity variances, direct labor rate and efficiency variances, and the variable overhead and fixed variances. State if each variance is favorable or unfavorable, and give 1 reason for each variance over $3,500 Direct materials: Price variance Quantity variance Direct labor: Rate variance Efficiency variance Variable overhead: Spending variance Efficiency variance Fixed overhead Spending variance Volume variance
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