Dresco, Incorporated is analyzing its most current results against the budget.

Here is the standard cost information:

Standard Cost per Direct Material$/$Hour Standard Quantity$/$Hours per Unit Standard Cost per Unit

Direct Materials $ $7\mathrm{.}502\mathrm{.}5$ $ $18\mathrm{.}75$

Direct Labor $ $19\mathrm{.}002$ $ $38\mathrm{.}00$

Variable Overhead $ $6\mathrm{.}502$ $ $13\mathrm{.}00$

Planned production $($units$)10,000$

Actual cost information is below:

Units Produced $9,500$

Materials Purchased and Used $27,500$

Cost of Direct Materials $ $181,000$

Direct Labor Hours $18,500$

Direct Labor Cost $ $406,000$

Variable Overhead Cost $ $115,000$

Fixed Overhead Cost $ $325,000$

Required:

Calculate the Materials Price, Quantity, and Spending Variance.

Calculate the Direct Labor Rate, Efficiency, and Spending Variance.

Calculate the Variable Overhead Rate, Efficiency, and Spending Variance.

Hint: Use the ABS$()$ function to calculate amounts.

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