# Calculations of Actual Costs Incurred

The standard costs and variances for direct materials, direct labor, and factory overhead for the
month of May are as follows:
Variances
Standard Cost Unfavorable Favorable

Direct materials . . . . . . . . . . . . . . . . . . . . . . . . \$ 85,000
Price variance . . . . . . . . . . . . . . . . . . . . . . . \$5,000
Quantity variance . . . . . . . . . . . . . . . . . . . . . \$3,000
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000
Rate variance . . . . . . . . . . . . . . . . . . . . . . . . 2,700
Efficiency variance . . . . . . . . . . . . . . . . . . . . 6,200
Manufacturing overhead . . . . . . . . . . . . . . . . . 300,000
Spending variance . . . . . . . . . . . . . . . . . . . . 4,000
Volume variance . . . . . . . . . . . . . . . . . . . . . . 5,000

Determine the actual costs incurred during the month of May for direct materials, direct labor,
and manufacturing overhead.

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