Champlain Manufacturing has two direct cost categories: direct materials and direct labor costs. The company's variable manufacturing overhead is allocated to products based on standard direct labor hours. The following information indicates the standards of Champlain's manufacturing costs:
Direct cost categories
	Standard Quantity				Cost per Input Unit
Direct materials	7.4	pounds per output unit			$ 11.15	per pound
Direct Labor	0.25	hours per out put unit			$ 21.50	per hour
Manufacturing Overhead
		Cost per Input Unit
Variable manufacturing Overhead		$ 9.25	per Direct Labor Hour
May data
Direct materials purchased and used		$ 10.75	per pound		91,000	pounds
Direct Labor		$ 22.25	per hour		4,300	labor hours
Actual variable manufacturing overhead					$ 32,500
Actual Production					12,500	output units
Part a) and Part b) Calculate the following variances: Direct Materials Price Variance and Direct Materials Quantity Variance
Direct Materials Variance:	Actual Results/ Units	Total Actual Results	Price Variance	F or U	AQ x SP	F or U	Quantity Variance	F or U	Total Standard Allowed	Standard Allowed/ Unit
Units Produced
Direct Materials
		AQ			AQ				SQ
Materials/Units Produced
	AP				SP					SP
Price/Unit
		AQ x AP	DMPV		AQ x SP		DMQV		SQ x SP
Total Cost
					DMV
Total Direct Materials Variance
Provide a possible reason for the favorable or unfavorable Direct Materials Price Variance.
Provide a possible reason for the favorable or unfavorable Direct Materials Quantity Variance.
Provide a possible reason for the favorable or unfavorable Total Direct Materials Variance.
Part c) and Part d) Calculate the following variances: Direct Labor Rate Variance and Direct Labor Efficiency Variance
Direct Labor Variance:	Actual Results/ Units	Total Actual Results	Labor Rate Variance	F or U	AQ x SP	F or U	Direct Labor Efficiency Variance	F or U	Total Standard Allowed	Standard Allowed/ Unit
Units Produced
Direct Labor
		AQ			AQ				SQ
DLH/Unit
	AP				SP					SP
DL price/unit
		AQ x AP	DLRV		AQ x SP		DLEV		SQ x SP
Total Cost
					DLV
Total Direct Labor Variance
Provide a possible reason for the favorable or unfavorable Direct Labor Rate Variance.
Provide a possible reason for the favorable or unfavorable Direct Labor Efficiency Variance.
Provide a possible reason for the favorable or unfavorable Total Direct Labor Variance.
Part e) and Part f) Calculate the following variances: Variable Manufacturing Overhead Spending Variance and Variable Manufacturing Overhead Efficiency Variance
Variable Overhead Variance:	Actual Results/ Units	Total Actual Results	VOH Spending Variance	F or U	AQ x SP	F or U	VOH Efficiency Variance	F or U	Total Standard Allowed	Standard Allowed/ Unit
Units Produced
Variable Manufacturing Overhead
		AQ			AQ				SQ
Units (DLH)
	AP				SP					SP
VOH price/DLH
		AQ x AP	VOHSV		AQ x SP		VOHEV		SQ x SP
Total Cost
					VOHV
Total Variable Overhead Variance
Provide a possible reason for the favorable or unfavorable Variable Manufacturing Overhead Spending Variance.
Provide a possible reason for the favorable or unfavorable Variable Manufacturing Overhead Efficiency Variance.
Provide a possible reason for the favorable or unfavorable Total Variable Overhead Variance.