Costello Corporation variance

Costello Corporation manufactures a single product. The standard cost per unit of product is shown below. The predetermined manufacturing overhead rate is $16 per direct labor hour ($40.00 2.50). It was computed from a master manufacturing overhead budget based on normal production of 14,750 direct labor hours (5,900 units) for the month. The master budget showed total variable costs of $88,500 ($6.00 per hour) and total fixed overhead costs of $147,500 ($10.00 per hour). Actual costs for October in producing 3,200 units were as follows.

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