At the beginning of 2008, Nepean Company had the following standard costs for one of its products:

The company computes its overhead rates using practical volume, which is 72,000 units. The actual results for 2008 were as follows:

Required:

1. Compute the price and usage variances for materials
2. Compute the labor rate and efficiency variances
3. Compute the fixed overhead spending and denominator variances
4. Compute the variable overhead spending and efficiency variances
5. Who would likely be responsible for each of these variances, and why?

Direct Materials 5 kilograms @ $1.60 Direct Labour 2 hours @ $9.00 Fixed Overhead 2 hours @ $2.50 Variable Overhead 2 hours @ $1.50 Total Standard Cost Per Unit $ 8.00 $18.00 $ 4.00 $ 3.00 $33.00 1) Units produced: 2) Materials purchased: 3) Materials used: 4) Direct labour 5) Fixed overhead: 6) Variable overhead: 70,000 372,000 kilograms @ $1.55 369,000 kilograms 145,000 hours @ $8.95 $240,000 $220,000