1. Direct Material, Direct Labor and Variable Manufacturing Overhead Variances

Landram Corporation makes a product with the following standard costs: In March the company produced 4,700 units using 10,230 kilos of the direct material and 2,210 direct labor-hours. During the month, the company purchased 10,800 kilos of the direct material at a cost of $76,680. The actual direct labor cost was $38,233 and the actual variable overhead cost was $11,934. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchase variance is computed when the materials are purchased

Compute the materials quantity variance, materials price variance, labor efficiency variance,

Labor rate variance, variable overhead efficiency variance and variable overhead rate

variance.

Inputs........... Direct materials Direct labor. Variable overhead........ Standard Quantity or Hours 2.0 kilos 0.5 hours 0.5 hours Standard Price or Rate $7.00 per kilo $19.00 per hour $5.00 per hour