1.Compute the material price and efficiency variances for the year.

2.Compute the labor rate and efficiency variances for the year.

3. Are things going as smoothly as the VP believes? Evaluate the companys variances and determine whether the change to a new supplier and the companys team building appears to be working. Explain!

4.Is it possible that some of the companys current problems lie outside Successs area of responsibility? Explain

Success Co. produces and sells a single product. It uses a standard-costing system to assist in the evaluation of operation A review of the company's standard cost records found that each completed unit requires 2 feet of direct materials at $8.45 per foot and 2 direct-labor hours at $16 per hour. Variable and fixed manufacturing overhead are allocated based on direct-labor hour. The vice president of manufacturing recently commented that . Success has really done the trick The change to a new direct-material supplier and company's team building training have truly brought things under control." The VP comments were based on both a plant tour, where he observed a contented work force, and a review of performance report. The following additional information is available for the year just completed: a. The company manufactured 30.000 units of product during the year. b. A total of 64.000 feet of material was purchased during the year at a cost of $8.85 per foot. All of this material was used to manufacture the 30.000 units. There was no beginning or ending inventories for the year. c. The company worked 43,500 direct labor-hours during the year at a direct labor cost of $16.80 per hour. d. Data relating to manufacturing overhead costs follow: Denominator activity level (direct labor-hours) Actual variable overhead costs incurred 35,000 $108,000