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P12.52B (LO 2, 3) Excel Ranier Corporation manufactures a single product. The standard cost per unit of the product is shown below: Direct materials-1.5 kg of plastic at 88 per kilogram $12.00 Direct labour-2 hours at $15 per hour 30.00 Variable manufacturing overhead 10.00 Fixed manufacturing overhead 5.00 Total standard cost per unit $57.00 The predetermined manufacturing overhead rate is $7.50 per direct labour hour ($15.00 = 2). This rate was calculated from a master manufacturing overhead budget based on normal production of 20,000 direct labour hours (10,000 units) for the month. The master budget showed total variable costs of $100,000 ($5.00 per hour) and total fixed costs of $50,000 ($2.50 per hour). Actual costs for October in producing 9,600 units were as follows: Direct materials (10,200 kg) $ 74,500 Direct labour (14,000 hours) 175,000 Variable overhead 112,500 Fixed overhead 37,500 Total manufacturing costs $399,500 The purchasing department normally buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories can therefore be ignored. Instructions a. Calculate all of the materials and labour variances. a. MPV: $7,100 FLQV: $78,000 F b. Calculate the total overhead variance. c. Calculate the overhead budget variance and the overhead volume variance

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