Stratton, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirts is as follow.

Sandy Robison, operations manager, was reviewing the results for November when he became upset by the unfavorable variances he was seeing. In an attempt to understand what had happened, Sandy asked CFO Suzy Summers for more information. She provided the following overhead budge., along with the actual results for November.

The company purchased 82,000 yards of fabric and used 93,700 yards of fabric during the month. Fabric purchases during the month were made at $2.80 per yard. The direct labor payroll ram $457,375, with an actual hourly rate of $12.50 per direct labor hour. The annual budgets were based on the produc­tion of 600,000 shirts, using 450,000 direct labor hours. Though the budget for November was based on 45,000 shirts, the company actually produced 42,500 shirts during the month.

Required

a. Calculate the direct materials price and quantity variances for November.

b. Calculate the direct labor rate and efficiency variances for November.

c. Calculate the variable overhead spending and efficiency variances for November.

d. Calculate the fixed overhead spending variance for November.

e. Provide a plausible cause for each variance you calculated.

f. Which of them variances should Sandy be held responsible for? Why?

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Standard Price Standard Quantity Standard Cost $ 3 per yard $14 per DLH $ 3.20 per DLH $ 3 per DLH Direct materials 2 yards $ 6.00 Direct labor 0.75 DLH 10.50 Variable overhead 0.75 DLH 2.40 Fixed overhead 0.75 DLH 2.25 $21.15