Humphreys, Inc

Essay

Humphreys, Inc. uses standard costing for its one product, baseball bats. The standards call for 3 board-feet of wood at $1.40 per board-foot, and 45 minutes of work at $12 per hour per bat. Total manufacturing overhead costs were estimated at $5,250, of which the variable portion was $0.50 per bat and the fixed portion was $0.75 per bat with an estimate of 4,200 bats to be produced. Humphreys identifies price variances at the earliest possible point in time.
During March, the company had the following results:
Direct labor used = 3,200 hours at a cost of $37,760
Actual manufacturing overhead fixed costs = $3,000
Actual manufacturing overhead variable costs = $2,050
Bats produced = 4,000
Instructions
Compute the following variances for March.
1. Labor quantity variance
2. Total labor variance
3. Overhead controllable variance
4. Overhead volume variance