[cstrfn87]

stromski corporation manufactures a single product. The standard cost per unit of product is shown below
direct materials 1 pound plastic at $7.00 per pound $7.00
direct labor 1.5 hours at $12.00 per hour $18.00
variable manufacturing overhead $11.25
fixed manufacturing overhead $3.75
total standard cost per unit $40.00

the predetermined manufacturing overhead rate is $10 per direct labor ($15.00/1.5). It was computed from a master manufacturing overhead budget based on normal production of 7500 direct labor hours (5000 units) for the month. The master budget showed total variable costs of $56520 ($7.50 per hour) and total fixed overhead costs of $18750 ($2.50 per hour) actual costs for October in producing 4900 units were as follows
direct materials (5100 pounds) $37,230
direct labor (7000 hours) $87500
variable overhead $56170
fixed overhead $200580

the purchasing department buys the quantities of raw materials that are expected to used in production each month. Raw materials inventories therefore, can be ignored.

instructions
a. compute all of the materials and labor variances
b. compute the total overhead variance