Helix Company produces several products in its factory, including a karate robe. The company uses a standard cost system to assist in the control of costs. According to the standards that have been set for the robes, the factory should work 780 direct labor-hours each month and produce 1,950 robes. The standard costs associated with this level of production are as follows:

During April, the factory worked only 760 direct labor-hours and produced 2,000 robes. The following actual costs were recorded during the month:

At standard, each robe should require 2.8 yards of material. All of the materials purchased during the month were used in production.

Required:
Compute the following variances for April:
1. The materials price and quantity variances.
2. The labor rate and efficiency variances.
3. The variable manufacturing overhead spending and efficiencyvariances.

Transcribed Image Text:

Per Unit Total of Product Direct materials Direct labor$7,020 Variable manufacturing overhead $35,490 $18.20 3.60 1.20 $23.00 (based on direct labor-hours). $2,340 Per Unit Total of Product Direct materials (6.000 yards)36,000 $18.00 Direct labor$7,600 Variable manufacturing overhead $3,800 3.80 1.90 $23.70