The accountants at Value Vases developed the following standards for producing exquisite vases from a liquid silicate:

Direct materials……………………….2.5 gallons @ $5 per gallon

Direct labor. ……………………………3.5 hours @ $15 per hour

Variable overhead……………………$10.00 per direct labor hour

Fixed overhead……………………….$5.00 per direct labor hour

Value’s volume of direct labor hours for normal costing is 1,680 each month. In a recent month, Value produced 500 vases and incurred the following costs:

Direct materials purchased & used………………1,200 gallons @ $6 per gallon

Direct labor…………………………………………1,700 hours @ $14 per hour

Variable overhead……………………………………………………….$15,000

Fixed overhead…………………………………………………………...$8,500

Calculate the following variances.

1. Direct material price variance

2. Direct material efficiency variance

3. Direct labor price variance

4. Direct labor efficiency variance