Grant and Griffin have a food processing company. One product is a gourmet frozen pizza. Variable manufacturing overhead is based on direct labor-hours.

Standard Quantity Standard Cost

Pepperoni (1.5 ounces) Pepperoni ($0.15 per ounce)

Direct Labor (0.14 hours) Direct Labor ($15.00 per hour)

Variable MOH (0.14 hours) Variable MOH ($3.50 per hour)

During August 41,000 pizzas were produced and the following activity was recorded:

a) 49,500 ounces of pepperoni were purchased for $14,915

b) 73,450 ounces of pepperoni were used during the month

c) 5000 Direct Labor Hours were worked at a cost of $85,250

d) Actual Manufacturing Overhead incurred was $25,200

Required:

1) Calculate materials price, quantity, and total variances of PEPPERONI.

2) Calculate the direct labor rate, efficiency and variances.