Acct344 Devry Cost Accounting: (TCO 6) Santa Inc. manufactures toys

Acct344 Devry Cost Accounting
3. (TCO 6) Santa Inc. manufactures toys based on the following information.
Standard costs
Materials (4 ounces at $4) 16.00
Direct labor (1 hour per unit) 7.00
Variable overhead (based on direct labor hours) 3.50
Fixed overhead budget 16,000

Actual results and costs
Materials purchased
Units 10,000
Cost 38,500
Materials used in production
Finished product units 2,350
Raw material (ounces) 10,200
Direct labor hours 2,350
Direct labor cost 17,500
Variable overhead costs 8,100
Fixed overhead costs 15,600

Requirements:
Compute the following variances (show calculations).
a. Materials usage variance
b. Labor rate variance
c. Fixed overhead budget variance
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