Corona Corp. has the following standards for one unit of product:

Direct Material: 80 pounds X $6

$480

Direct Labor: 3 hours X $16 per hour

48

Variable Overhead: 1.5 hours of machine time X $50 per hour

75

Fixed Overhead: 1.5 hours of machine time X $30 per hour

45

The predetermine OH rates were developed using a capacity of 6,000 units per year.Production to occur evenly throughout the year.

During October, the company produced 525 units. Actual data for October are as follows:

Direct Material Purchased 45,000 pounds X $5.92 per pound

Direct Material Used: 43,020 pounds (all from the current purchases)

Total Labor cost $24,955 for 1,550 hours

Variable overhead incurred: $43,750 for 800 hours of machine time

Fixed overhead incurred: $22,800 for 800 hours of machine time

Required:

a) Material price variance based on quantity purchased

b) Material quantity variance

c) Labor price (rate) variance

d) Labor efficiency variance

e) Variable overhead spending variance

f) Variable overhead efficiency variance