Putnam Corporation manufactures a single product. The standard cost per unit of product is shown...

Question

Putnam Corporation manufactures a single product. The standard cost per unit of product is shown below. 
 Direct materials-1 pound plastic at $7.00 per pound $ 7.00 
 Direct labor-1.5 hours at $12.00 per hour 18.00 
 Variable manufacturing overhead 11.25 
 Fixed manufacturing overhead 3.75
 
 Total standard cost per unit $40.00

The predetermined manufacturing overhead rate is $10 per direct labor hour ($15.00 ÷ 1.5). It was computed from a master manufacturing overhead budget based on normal production of 7,500 direct labor hours (5,000 units) for the month. The master budget showed total variable costs of $56,250 ($7.50 per hour) and total fixed overhead costs of $18,750 ($2.50 per hour). Actual costs for October in producing 4,900 units were as follows. 
 Direct materials (5,100 pounds) $ 37,230 
 Direct labor (7,000 hours) 87,500 
 Variable overhead 56,170 
 Fixed overhead 19,680
 
 Total manufacturing costs $200,580

The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. 
Instructions
Compute all of the materials, labor, and total overhead variances. 
Total materials variance 
Materials price variance 
Materials quantity variance 
Total labor variance 
Labor price variance 
Labor quantity variance 
Total overhead variance 
I know the equations to use to get each amount, but I am not getting the correct amounts from the problem to plug into the equation.

Robert · Accepted Answer

Answer 
1) Material Price Variance 
                                 =Actual quantity (Std. price –Actual price) 
                                 = 5,100lbs ($7 - $37,230/5100) 
                                 = 5,100 ($7- $7.30) 
                                 = $1,530 (UF) 
2) Material Quantity Variance  
                                 = Std. Price (Std. Quantity –Actual Quantity) 
                                 = $7.00 (4,900lbs – 5,100lbs) 
                                 = $1,400 (UF)  
3) Total Material Variance  
                  = (Std. Quantity * Std. Price) – (Actual Quantity* Actual Price)  
                               = (4,900*$7) – (5,100*$7.30) 
                               =   $34,300 -$37,

Putnam Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $7.00 per pound $ 7.00 Direct labor-1.5 hours at $12.00 per...

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