Based on the following information below:

1.Calculate the direct materials price and quantity variance.

2. Calculate the direct labor rate and efficiency variances.

3. Calculate the variable overhead spending and efficiency variances.

4. Calculate the fixed overhead budget variance.

5. Pick out the two variances that you computed above that you think should be further investigated. Explain why you picked these 2 variances and what might be the possible cause of the variances.

Gourmet, Inc. produces containers of frozen food Duing October the company had the following actual production and costs. Actual Containers produced in October 720 Variable Overhead $5,700 Fixed Overhead $13,000 Direct Labor cost $90,000 Which is 3,900 Direct labor hours Actual material purchased $28,000 Which is 15,000 pounds Actual Material pounds used 14,600 pounds Overhead is budgeted and applied using direct labor hours. Standard cost and annual budget information are as follows: Direct Labor Direct Material Standard cost per container 5 hours at 20 pounds at Direct $19.75 $2.00 $99 $40 labor Variable overhead $1.50 $7.50 5 hours Direct labor 5 hours at $300 Fixed Overhead Total $15 $161.25 Budgeted Monthly Fixed Overhead $12500