1. Clean Water manufactures a water filter system. The cost standards developed by Clean Water appear below. Manufacturing overhead at Clean Water is applied to production based on standard direct labor-hours:

		Standard quantity per system	Standard cost per Kilogram or hour		Standard cost per system
	Direct materials	4 Kilograms	$3.25		$13.00
	Direct labor	1.4 hours	$11.00		15.40
	Variable overhead	1.4 hours	$4.00		5.60
	Fixed overhead	1.4 hours	$6.00		8.40
	Total standard cost per sucker				$42.40
The standards above were based on an expected annual volume of 8,000 systems Actual results for last year were as follows:
	Number of systems produced			8,200
	Direct labor-hours incurred			11,610
	Kilograms of direct materials purchased			38,300
	Kilograms of direct materials used in production			35,260
	Total cost of direct materials purchased			$126,390
	Total direct labor cost			$131,040
	Total variable overhead cost			$44,900
	Total fixed overhead cost			$67,080

Required:

Compute the following variances for Clear Water and comment on results.

a. Materials price variance.

b. Materials quantity variance.

c. Labor rate variance.

d. Variable overhead spending variance.

e. Variable overhead efficiency variance.

f. Fixed overhead budget variance.

g. Fixed overheard volume variance