1. Bulluck Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate
Direct materials		4.6	grams	$	2.10	per gram
Direct labor		0.6	hours	$	22.00	per hour
Variable overhead		0.6	hours	$	3.10	per hour

The company reported the following results concerning this product in July.

Actual output		4,100	units
Raw materials used in production		12,470	grams
Actual direct labor-hours		2,280	hours
Purchases of raw materials		13,200	grams
Actual price of raw materials purchased	$	2.30	per gram
Actual direct labor rate	$	12.50	per hour
Actual variable overhead rate	$	3.20	per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for July is:

2.

Milar Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate
Direct materials		11.0	pounds	$	10.50	per pound
Direct labor		0.8	hours	$	34.00	per hour
Variable overhead		0.8	hours	$	16.00	per hour

In January the company produced 3,450 units using 13,800 pounds of the direct material and 2,880 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $14,560. The actual direct labor cost was $97,506 and the actual variable overhead cost was $44,188.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The labor rate variance for January is: