Appletons Inc. produces medical devices for hospitals in Ottawa. The company currently utilizes a standard costing system. Below outlines the standard cost for House's most popular product, the heart monitor.

Quantity Required for One Monitor Standard Rate/Price

Direct Materials 3.0 kg $12.00 per kg

Variable Manufacturing Overhead 3.0 hours $6.00 per hour

Direct Labour 2.0 hours $18.00 per hour

Fixed Overhead 1.5 hours $9.00 per hour

Overhead is allocated based on direct labour hours and the average production volume of 20,000 heart monitors. This currently utilizes 90% of the maximum capacity.

Below is information related to the February 2022 production, in which 21,000 monitors were produced:

Quantity Cost

Direct Materials purchased 70,000 $860,000

Direct materials used 68,000 $835,040

Direct Labour 39,000 $690,000

Variable Overhead $200,000

Fixed Overhead $125,000

REQUIRED

A) Calculate the standard quantity of materials needed to make 21,000 monitors (1 mark)

B) Calculate the standard quantity of labour-hours needed to make 21,000 monitors (1 mark)

C) Calculate the Direct Materials Price Variance (2 marks)

D) Calculate the Direct Materials Quantity Variance (2 marks)

E) Calculate the Direct Labour Efficiency Variance (2 marks)

F) Calculate the Variable Overhead Spending Variance (2 marks)