Problem - The M Company uses a flexible budget and standard costs to aid planning and control of its machining manufacturing operations. Its costing system for manufacturing has two direct categories (direct material and direct manufacturing labor, both variable) and two overhead categories (variable manufacturing overhead and fixed manufacturing overhead, both allocated (or applied) using direct manufacturing labor-hours)

At the 40,000 budgeted manufacturing labor-hour level for August, budgeted direct manufacturing labor is $800,000, budgeted variable manufacturing overhead is $480,000, and budgeted fixed manufacturing overhead is $640,000.

The following actual results are for August:

Direct materials price variance (based on purchases) $176,000F

Direct materials efficiency variance 69,000U

Direct manufacturing labor costs incurred 522,750

Variable manufacturing Overhead flexible-budget (total) variance 10,350U

Variable manufacturing overhead efficiency variance 18,000U

Fixed manufacturing overhead incurred 597,460

Fixed manufacturing overhead spending variance 42,540

The standard cost per pound of direct materials is $11.50. The standard allowance is three pounds of direct materials for each unit of product. During August 30,000 units of products were produced. There was no beginning of direct materials. There was no beginning or ending work in process.

The average rate in August exceeded the standard average rate by $ .50 per hour.

Requirements - Compute the following for August

1. Total pounds of direct material purchased

2. Total number of pounds of excess direct materials used

3. Variable manufacturing overhead spending variance

4. Total number of actual direct manufacturing labor hours used

5. Total number of standard direct manufacturing labor hours allowed for the units produced

6. Production volume variance

7. Prepare a brief report to management that could be useful to evaluate performance.