Direct materials

Standard Price: $1.50/kg , Standard Usage: 10kgs, Standard Cost/unit: $15.00

Direct labour:

Standard Price:

$6.00/hr, Standard Usage: 2hours, Standard Cost/unit: 12.00

Variable overhead

Standard Price: $10.00/hr, Standard Usage: 2hours, Standard Cost/unit: 20.00

Fixed Overhead

Standard Price: $8.00/hr, Standard Usage: 2hours, Standard Cost/unit: 16.00

Other operating data for period:

Units produced 20,000 units

210,000 kilograms purchased @$1.55 per kilogram; 205,000 kgs. used

Direct labour costs 39,000 hours @$6.10 per hour

Variable overhead $410,000

Fixed overhead $300,000; Rate= ($310,000/38,750 hrs)

Required Calculate:

1. Direct materials purchase price, price and quantity variance

2. Direct labor rate variance and efficiency variance

3. Variable overhead spending variance and efficiency variance

4. Fixed overhead Spending variance and volume variance