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Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below.

Direct materials1 pound plastic at $8.00 per pound		$ 8.00
Direct labor0.5 hours at $11.10 per hour		5.55
Variable manufacturing overhead		2.75
Fixed manufacturing overhead		5.25
Total standard cost per unit		$21.55

The predetermined manufacturing overhead rate is $16.00 per direct labor hour ($8.00 0.5). It was computed from a master manufacturing overhead budget based on normal production of 2,500 direct labor hours (5,000 units) for the month. The master budget showed total variable costs of $13,750 ($5.50 per hour) and total fixed overhead costs of $26,250 ($10.50 per hour). Actual costs for October in producing 3,900 units were as follows.

Direct materials (4,060 pounds)		$ 32,886
Direct labor (1,750 hours)		19,950
Variable overhead		21,838
Fixed overhead		11,362
Total manufacturing costs		$86,036

The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. (a) Compute all of the materials and labor variances.

Total materials variance		$enter a dollar amount		select an option Neither favorable nor unfavorable/Unfavorable/Favorable
Materials price variance		$enter a dollar amount		select an option Neither favorable nor unfavorable/Favorable/Unfavorable
Materials quantity variance		$enter a dollar amount		select an option Neither favorable nor unfavorable/Unfavorable/Favorable
Total labor variance		$enter a dollar amount		select an option Favorable/Neither favorable nor unfavorable/Unfavorable
Labor price variance		$enter a dollar amount		select an option UnfavorableFavorableNeither favorable nor unfavorable
Labor quantity variance		$enter a dollar amount		select an option Unfavorable/Favorable/Neither favorable nor unfavorable

(b) Compute the total overhead variance.

Total overhead variance

$enter the total overhead variance in dollars

select an option Neither favorable nor unfavorable/Unfavorable/Favorable

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