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Chillco Corporation produces containers of frozen food. During April, Chillco produced 760 cases of food and incurred the following actual costs.

Variable overhead	$	6,400
Fixed overhead		21,300
Actual labor cost (5,000 direct-labor hours)		87,500
Actual material cost (20,000 pounds purchased and used)		66,000

Overhead is budgeted and applied using direct-labor hours in a standard costing system. Standard cost and annual budget information are as follows:

Standard Costs per Case
Direct labor (6 hours at $17 per hour)	$	102.00
Direct material (25 pounds at $2.90 per pound)		72.50
Variable overhead (6 direct-labor hours at $1.60 per hour)		9.60
Fixed overhead (6 direct-labor hours at $4 per hour)		24.00
Total	$	208.10

Annual Budget Information
Variable overhead	$	96,000
Fixed overhead	$	240,000
Planned activity for year		60,000	direct-labor hours

compute the following cost variances from the available data.

Direct-material price variance $8,000 Unfavorable Direct-material purchase price variance $8,000 Unfavorable Direct-material quantity variance $2,900 Unfavorable Direct-labor rate variance $2,500 Unfavorable Direct-labor efficiency variance $7,480 Unfavorable Variable-overhead spending variance $1,600 Favorable Variable-overhead efficiency variance $704.00 Unfavorable Fixed-overhead budget variance $1,300 Unfavorable Fixed-overhead volume variance Unfavorable

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