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Maris Corporation manufactures a single product.The standard cost per unit of productis as follows.Direct materials—2 pounds of plastic at $5 per pound $10Direct labor—2 hours at $12 per hour 24Variable manufacturing overhead 8Fixed manufacturing overhead 6Total standard cost per unit $48The master manufacturing overhead budget for the month based on normal productive capacityof 20,000 direct labor hours (10,000 units) shows total variable costs of $80,000 ($4 per laborhour) and total fixed costs of $60,000 ($3 per labor hour). Normal productive capacity is 20,000direct labor hours. Overhead is applied on the basis of direct labor hours. Actual costs forNovember in producing 9,700 units were as follows.Direct materials (20,000 pounds) $ 98,000Direct labor (19,600 hours) 239,120Variable overhead 79,100Fixed overhead 59,000Total manufacturing costs $475,220The purchasing department normally buys the quantities of raw materials that are expected to beused 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.
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