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Beach Boys Company makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 5.2 grams $ 7.00

Beach Boys Company makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate
Direct materials 5.2 grams $ 7.00 per gram
Direct labor 0.5 hours $ 14.00 per hour
Variable overhead 0.5 hours $ 4.00 per hour

In June the company produced 4,500 units using 24,650 grams of the direct material and 2,610 direct labor-hours. During the month the company purchased 24,400 grams of the direct material at a price of $6.80 per gram. The actual direct labor rate was $14.60 per hour and the actual variable overhead rate was $3.90 per hour. The materials price variance is computed when materials are purchased. Variable overhead is applied on the basis of direct labor-hours.

Required:

Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase: (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.)

Direct materials quantity variance
Direct materials price variance
Direct labor efficiency variance
Direct labor rate variance
Variable overhead efficiency variance
Variable overhead rate variance

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