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 Tuna Company set the following standard unit costs for its single product.
 Direct materials (27 Ibs. @ \$4 per Ib.) \$ 108.00 Direct labor (8 hrs. @ \$8 per hr.) 64.00 Factory overhead—variable (8 hrs. @ \$5 per hr.) 40.00 Factory overhead—fixed (8 hrs. @ \$7 per hr.) 56.00 Total standard cost \$ 268.00
 The predetermined overhead rate is based on a planned operating volume of 60% of the productive capacity of 40,000 units per quarter. The following flexible budget information is available.
 Operating Levels 50% 60% 70% Production in units 20,000 24,000 28,000 Standard direct labor hours 160,000 192,000 224,000 Budgeted overhead Fixed factory overhead \$ 1,344,000 \$ 1,344,000 \$ 1,344,000 Variable factory overhead \$ 800,000 \$ 960,000 \$ 1,120,000
 During the current quarter, the company operated at 70% of capacity and produced 28,000 units of product; actual direct labor totaled 222,000 hours. Units produced were assigned the following standard costs:
 Direct materials (756,000 Ibs. @ \$4 per Ib.) \$ 3,024,000 Direct labor (224,000 hrs. @ \$8 per hr.) 1,792,000 Factory overhead (224,000 hrs. @ \$12 per hr.) 2,688,000 Total standard cost \$ 7,504,000
 Actual costs incurred during the current quarter follow:
 Direct materials (751,000 Ibs. @ \$4.10) \$ 3,079,100 Direct labor (222,000 hrs. @ \$7.75) 1,720,500 Fixed factory overhead costs 1,968,679 Variable factory overhead costs 1,843,019 Total actual costs \$ 8,611,298

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 1 Compute the direct materials cost variance, including its price and quantity variances.(Do not round your intermediate calculations. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values. Leave no cells blank – be certain to enter “0” wherever required. Omit the “\$” sign in your response.)
 Direct materials cost variance \$ Price variance \$ Quantity variance \$

 Compute the direct labor variance, including its rate and efficiency variances.(Do not round your intermediate calculations. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values. Leave no cells blank – be certain to enter “0” wherever required. Omit the “\$” sign in your response.)
 Direct labor cost variance \$ Rate variance \$ Efficiency variance \$

 Compute the overhead controllable and volume variances.(Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values. Leave no cells blank – be certain to enter “0” wherever required. Omit the “\$” sign in your response.)
 Controllable variance \$ Fixed overhead volume variance \$

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