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Glaab Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on

Glaab Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.

Inputs

Standard Quantity or Hours per Unit

of Output

Standard Price

or Rate

Direct materials

4.0 liters

$6.00 per liter

Direct labor

0.90 hours

$18.00 per hour

Variable manufacturing overhead

0.90 hours

$8.00 per hour

The company has reported the following actual results for the product for September:

Actual output

3,100

Units

Raw materials purchased and used

13,200

Liters

Actual price of raw materials

$6.70

per liter

Actual cost of raw materials purchased

$88,440

Actual direct labor-hours

3,010

Hours

Actual direct labor rate

$18.60

per hour

Actual direct labor cost

$55,986

Actual variable overhead rate

$8.50

per hour

Actual variable overhead cost

$25,585

Required:

  1. Compute the materials price variance for September.
  2. Compute the materials quantity variance for September.
  3. Compute the labor rate variance for September.
  4. Compute the labor efficiency variance for September.
  5. Compute the variable overhead rate variance for September.
  6. Compute the variable overhead efficiency variance for September.

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