The Following Information Is for the Standard and Actual Costs

Short Answer

The following information is for the standard and actual costs for the Happy Corporation:
Standard Costs:
Budgeted units of production - 16,000 [80% (or normal) capacity]
Standard labor hours per unit - 4
Standard labor rate - $26 per hour
Standard material per unit - 8 lbs.
Standard material cost - $12 per pound
Standard variable overhead rate - $15 per labor hour
Budgeted fixed overhead - $640,000
Fixed overhead rate is based on budgeted labor hours at 80% (or normal) capacity.
Actual Cost:
Actual production - 16,500 units
Actual material purchased and used - 130,000 pounds
Actual total material cost - $1,600,000
Actual labor - 65,000 hours
Actual total labor costs - $1,700,000
Actual variable overhead - $1,000,000
Actual fixed overhead - $640,000
Determine:
(a) the direct materials quantity variance, price variance, and total cost variance
(b) the direct labor time variance, rate variance, and total cost variance
(c) the factory overhead volume variance, controllable variance, and total factory overhead cost variance. (Note: If following text formulas, do not round interim calculations.)