Analysis of Standard Cost Variances Simpson Manufacturing has the following standard cost sheet for one of its products: The company uses a standard cost system and applies factory overhead based on direct labor hours and determines the factory overhead rate based on a budgeted capacity of 400 units of the product. Simpson has the following actual operating results for the year just completed: Required Determine standard cost per unit Compute the following variances using variance analysis: Total, Quantity and Price Variance for Direct Materials Total, Efficiency and Rate Variance for Direct Labor Total, Spending and Efficiency Variance for Variable Overhead Total under-applied or over-applied fixed overhead, Spending and Production Volume Variance for Fixed Overhead