The SCC Division of the Big-Drug Company uses standard costing to help control their production costs.  The division’s main product is a pharmaceutical product that comes in a multi-dose package.  The standard variable costs per package are given below:

Direct materials (chemical ingredients 1.50 ounces @ $.1.00 per ounce)

Direct materials (packaging 1 package piece @ $0.48 per package piece)

Direct labor (0.20 hour @ $20.00 per hour) 

Variable overhead ($2.00 per direct labor hour) 

Fixed overhead ($5.00 per direct labor hour)

 During the most recent month, 95,000 packages of the product were produced.  Other salient information related to the production of the 95,000 packages follows:

Actual variable overhead


Actual fixed overhead


Actual direct labor hours


Actual direct labor hourly rate


DM chemicals purchase price


DM chemicals purchase quantity


DM packages purchase price


DM packages purchase quantity


DM chemicals used 


DM packages used 


Fixed Overhead Budget



DM chemical purchase price variance

DM chemical efficiency (quantity) variance

DM packaging purchase price variance

DM packaging efficiency (quantity) variance

Direct Labor rate variance

Direct Labor efficiency variance 

The variable overhead spending variance

The variable overhead efficiency variance

The fixed overhead spending variance