12 Question 4 Peak Company uses a standard cost system to control its production costs. For 2009 the company reported the following operating data: Units produced (actual) 22,000 Master produetion budget Direct materials Direct labour Overhead $ 60,000 S 160,000 S 180,000 Standard cost per unit Direct materials Direct labour Variable overhead S1.60 x 5 kg per unit of output $16 per hour x 0.5 hours per unit of output S12 per direct labour-hour Actual costs Direct materials purchased and used Direct labour Overhead $183,600 (102,000 kg,) $160,000 (10,700 hours) $204,000 (32% is fixed) Variable overhead is applied on the basis of direct labour-hours Required Calculate the following variances: 4 Direct materials price and quantity variances 4 b Direct labour rate and efficiency variances 4 c. Variable overhead spending and efficiency variances