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Don Johnson is the management accountant for Cari-Blocks (CB), which manufactures specialty blocks. CB uses two direct cost categories: direct materials and direct manufacturing labour. Johnson feels that manufacturing overhead is most closely related to material usage. Therefore, CB allocates manufacturing overhead to production based upon pounds of materials used.

At the beginning of 2021, CB budgeted annual production of 200,000 blocks and adopted the following standards for each block:

		Input	Cost/Block
Direct materials	0.5 lb. @ $12/lb.		$ 6.00
Direct manufacturing labour	1.4 hours @ $20/hour		28.00
Manufacturing overhead:
Variable	$6/lb. 0.5 lb.		3.00
Fixed	$15/lb. 0.3 lb.		4.50
Standard cost per block			$41.50
Actual results for April 2021 were as follows:
Production		24,000 blocks
Direct materials purchased		12,000 lb. at $13/lb.
Direct materials used		11,450 lb.

Direct manufacturing labour	38,000 hours for $798000
Variable manufacturing overhead	$68,150
Fixed manufacturing overhead	$155,000

Required:

1. Prepare a schedule of total standard manufacturing costs for the 24000 production of blocks in April 2021.

2. For the month of April, compute the following variances, indicating whether each is favourable (F) or unfavourable (U):

1. Direct materials price variance (based on purchases)

2. Direct materials efficiency variance

3. Direct manufacturing labour price variance

4. Direct manufacturing labour efficiency variance

5. Variable manufacturing overhead spending variance

6. Variable manufacturing overhead efficiency variance

7. Fixed manufacturing overhead spending variance

8. Production-volume variance

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