The standard cost sheet for a product is shown.

Manufacturing Costs	Standard price	Standard Quantity	Standard Cost per unit
Direct materials	$4.70 per pound	6.10 pounds	$	28.67
Direct labor	$12.16 per hour	2.00 hours	$	24.32
Overhead	$2.20 per hour	2.00 hours	$	4.40
			$	57.39

The company produced 3,000 units that required:

• 18,800 pounds of material purchased at $4.55 per pound

• 5,900 hours of labor at an hourly rate of $12.56 per hour

• Actual overhead in the period was $13,680

Fill in the Budget Performance Report for the period. Someamounts are provided. Round your answers to the nearest dollar.However, do not round your intermediate calculations.

Budget Performance Report
Manufacturing Costs: 3,000 units	Actual Costs	Standard Costs	Variance (Favorable)/ Unfavorable
Direct materials	$85,540	?	?
Direct labor	?	72,960	?
Overhead	13,680	?	?
	?	?	$1,154

Split the direct materials cost variance into the materialsprice varaince and the Direct materials quantity variance. Rememberthat you want to isolate the price variance from the quantityvariance so be sure to use factors that do not overlap. Alsoremember that the two variances should equal the total directmaterial cost variance.

Direct materials price variance:	Direct materials quantity variance:
(Actual price - Standard price) xactual  quantity	(Actual quantity - Standard quantity) xstandard  price
$2,820 favorable	$2,350 unfavorable

Split the direct labor cost variance into the direct labor ratevariance and the direct labor time variance. Remember that you wantto isolate the price variance from the efficiency variance so besure to use factors that do not overlap. Also remember that the twovariances should equal the total direct labor cost variance.

Direct labor rate variance:	Direct labor time variance:
(Actual rate - Standard rate) x   hours	(Actual hours - Standard hours) x   laborrate
?	?

Manufacturing variances are period costs that are rolledinto_______? and reported on the________? . A favorable variance isrecorded as a _________? and an unfavorable variance is recorded asa________? .