At the beginning of 2019, Eigall Company had the following standard cost for one unit of its product:

Direct materials (5 kilograms @ $1.60) $8

Direct labour (2 hours @ $9) $18

Fixed Overhead (2 hours @ $2) $4

Variable Overhead (2 hours @ $1.50) $3

Eigall computes its overhead rates using practical volume, which is 72,000 units. For 2019, the company had the following actual results:

1. Production: 70,000 units
2. Materials purchased: 372,000 kilograms at $1.55
3. Materials used: 369,000 kilograms
4. Direct labour: 145,000 hours at $8.95

e. Fixed overhead: $240,000

f. Variable overhead: $220,000

Required:

1.Compute the price and usage variances for direct materials.

2. Compute the rate and efficiency variances for direct labour.

3. Compute the fixed overhead spending and denominator variances.

4. Compute the variable overhead spending and efficiency variances.