2. VARIANCE ANALYSIS The standard cost per unit of Syala Company is as follows: Direct materials 4 yards @$5 ....... $20 Direct labor 1 hour @$15 . 15 Variable OH 1 hour @$6... Fixed OH 1 hour @12 .... ....12 (Practical capacity of 6,000 direct labor hours) During the current year the available data are . 7,000 units of production . Purchase of direct materials 30,000 yards @$5.2 The use of direct materials is 19,500 yards . Direct labor costs $80,000 (consisting of 6,500 direct labor hours) . Variable overhead cost of $31,000 . Fixed overhead cost of $62,000 REQUESTED: 1. When and why the variance needs to be investigated / 2. Who is responsible for Direct Material variance above tolerance? 3. Calculate and include your calculations for: 1) Material Price Variance and Material Usage Variance 2) Labor Rate Variance and Labor Efficiency Variance 3) Variable OH Spending Variance and Variable OH Efficiency Variance 4) Fixed OH Spending Variance and Fixed OH Volume Variance