1. DM variances: Rabbit Hole, Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.

Inputs	Standard Quantity or Hours per Unit of Output			Standard Price or Rate
Direct materials		2.5	grams	$	6.40	per gram
Direct labor		0.8	hours	$	12.00	per hour
Variable manufacturing overhead		0.8	hours	$	2.90	per hour

The company planned to produce 7,400 units of output during June and has reported the following actual results for the product for June:

Actual output		7,700	Units
Raw materials purchased/used		17,940	grams
Actual price of raw materials	$	6.30	per gram
Actual direct labor-hours		8,000	Hours
Actual direct labor rate	$	11.00	per hour
Actual variable overhead rate	$	3.10	per hour

Assume all of the materials purchased was used during the month to produce the 7,700 units.

Calculate:

1. The DM activity variance
2. The DM spending variance
3. The DM price variance
4. The DM quantity variance