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ABC Company uses a standard cost accounting system. During 2018, ABC manufactured 20,000 products. The...

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ABC Company uses a standard cost accounting system. During 2018, ABC manufactured 20,000 products. The company used 144,000 pounds of material which it bought at $1.05 a pound. The prod uction of the 20,000 products required 420 direct labor hours that cost $13.50 per hour. The direct materials standard was 7 pounds of material per product at a standard cost of $1.10 per pound. The direct labor standard was.025 direct labor hours per product at a standard cost of $12.50 per hour. The company allocates manufacturing overhead based on the following rates: Standard variable overhead allocation rate: $10 per direct labor hour Standard fixed overhead allocation rate: $40 per direct labor hour For 2018, the actual variable overhead was $4,950; the actual fixed overhead was $23,000. For 2018, the budgeted fixed overhead was $22,000 TO DO: 1. Compute the cost and efficiency variance for Direct Materials 2. Compute the cost and efficiency variances for Direct Labor 3. Compute the variable overhead cost variance; variable overhead efficiency variance; fixed overhead cost variance; fixed overhead volume variance NOTE: indicate whether the variances are favorable or unfavorable

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