A company has the following standard costs for one unit of product:

• Direct materials: 2 pounds at $5 per pound
• Direct labor: 3 hours at $10 per hour
• Variable overhead: 2 hours at $3 per hour

Actual data for the period:

• Direct materials: 10,000 pounds at $4.50 per pound
• Direct labor: 15,000 hours at $10.50 per hour
• Variable overhead: $45,000

Requirements:

(a) Calculate the material price variance. (b) Determine the labor rate variance. (c) Compute the variable overhead efficiency variance. (d) Discuss the significance of standard costing variances.