Billy Products operates a small plant in New Mexico that produces dog food in batches. The product sells for $3 per pound. Standard costs (Per batch) for 2015 are:

Standard direct labor cost = $15 per hour

Standard direct labor hours per batch = 8 hours

Standard price of material A = $0.60 per pound

Standard pounds of material A per batch = 800 pounds

Variable overhead based on DLH = $9 Per DLH

Fixed overhead cost per batch = $400

At the start of 2015, the company estimated monthly production and sales of 40 batches. The company estimated that all overhead costs were fixed and amounted to $16,000 per month. During the month of June 2015 (typically a somewhat slow month), 30 batches were produced (not an unusual level of production for this month. The following cost were incurred:

Direct labor costs were $4,800 for 300 hours.

24,500 pounds of material A costing $15,025 were purchased.

23,020 pounds of material A was used.

Variable overhead of $3,120 was incurred.

Fixed overhead of $15,500 was incurred.

Questions:

1. Standard cost per batch and projected profit per batch?

2. Variances for direct material, direct labor, one-way overhead variance, variable overhead and fixed overhead.

3. Explain each variance.