Calculate price and quantity variances as well as spending and efficiency variances. Be sure to specify whether variances are favorable or unfavorable. Keep in mind that price and quantity variances for each category should add up to the total variance for that category.

Given the following information:

Variable overhead costsincurred$20,570

Material purchased andused2,900 pounds

Direct labor costsincurred$24,500

Direct labor hoursincurred2,450 hours

Finished unitsproduced500 units

Actual materialcost$37 per pound

Standard direct laborcost$9 per hour

Standard materialcost$40 per pound

Standard variableoverhead$8 per hour

Standard pounds of material in a finishedunit6 pounds

Standard direct labor hours per finishedunit5 hours

Required:

1. Compute the price and quantity variances for direct materials.
2. Compute the price and quantity variances for direct labor.
3. Compute the spending (price) and efficiency (quantity) variances for variable overhead.