Fleming Company developed the following standard costs for its product in 2012:
Standard Cost Card
Direct materials (4 pounds @ $3 per pound)
Direct labor (5 hours @ $9 per hour)
Manufacturing overhead
Variable (5 hours @ $5 per hour)
Fixed (5 hours @ $4 per hour)

The company planned to work 100,000 direct labor hours and produce 20,000 units of product in 2014. Actual results for 2012 are as follows:
• 20,500 units of product were produced.
• Actual direct materials purchased and used during the year amounted to 90,000 pounds at a cost of $278,100.
• Actual direct labor costs were $906,880 for 104,000 direct labor hours worked.
• Total actual manufacturing overhead incurred amounted to $920,000.

Instructions

find out the following variances and show your computations.
Indicate if the variances are favorable (F) or unfavorable (U).
a. Direct materials price variance
b. Direct materials quantity variances.
c. Direct labor price variance
d. Direct labor quantity variance.
e. Overhead controllable variance
f. Overhead volume variance.
g. Which variances, if any, need to be investigated further and which manager is responsible for each of those variances?