Compute the material price and quantity variance for the year.

PROBLEM 8A-10A Comprehensive Standard Cost Variances [LO8-4, LOB-5, LO8-6, LOB-7] underful! Not unly did our salespeople do i gix job in moting the sales budget this year, but our pro- cction peuple did a good job in controlling costs as well." said Kim Clark, president of Martell Company. Ou $18.00 overall Toufacturing cost variance is only 1.2% of the 51,536,000 standard cost of prod- Dis male during the year. That's well within the 3% parameter set by management for acceptable vari- 7. It looks like veryone will be in line for a bonus this year." be company produces and sells u mogle product. The standard cost card for the product follows: Standard Cost Card Per Unit Direct materials, 2 feet at SA.45 per foot. Direct labor, 1.4 direct labor-hours at S16 per direct abor-hour Variable overhead, 1.4 direct labor-hours at 82.50 per direct labor-hour Fixed overhead, 1.4 direct labor-hours at $6 per direct labor-hour $16.90 22.40 3.50 8.40 $51.20 Standard cost per unit Chapter 8 The following additional information is avilable for the year just complete The company manufacture 10,000 units of product during the year. h Alaf 64.000 feet of material was purchased during the year at a cost of $8.55 per fool. W material was used to manufacture the auts. There were no beginning of enig weiteres the year c. The company worked 43.500 timer labre-bours during the year al & direct labor cost of Sise bar d.Overhead is plied to proces on the basis of standard direct labor-hours. Dala tua manufacturing evented costs follow: Denominator atvily level direct la car-hours) Budgeted fixed wwerhead costs Actual variable avemed costs incurred. Actual fixed whead costs incurred. 35.000 S210.000 $108,000 $ 211,800 Required 1. Compute the materials price and quantity variances for the year. 2 Compute the laborate and cliciency variances for the year. 3. Fur manufacturing out head culpte a The variable overhead role and efficiency variances for the year. The food overhead budget and Wome variances for the year. Total the variances you bave computed, and compare the net amount with the $18,300 mernice dhe president. Do you never that bonuses should be given to everyone for good cost control during a year! Explain PRORIFM 10