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Graybeal Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct Materials 4.3 ounces $6.00 per ounce

Graybeal Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate
Direct Materials 4.3 ounces $6.00 per ounce
Direct Labor 0.7 hours $21.00 per hour
Variable Overhead 0.7 hours $7.00 per hour

The company reported the following results concerning this product in March.

Actual output 3,500 units
Raw materials used in production 14,710 ounces
Actual direct labor-hours 2,270 hours
Purchases of raw materials 16,700 ounces
Actual price of raw materials $5.80 per ounce
Actual direct labor rate $21.90 per hour
Actual variable overhead rate $7.30 per hour

The materials price variance is recognized when materials are purchased. Variable overhead is applied on the basis of direct labor-hours.

Required:

a. Compute the materials quantity variance.

b. Compute the materials price variance.

c. Compute the labor efficiency variance.

d. Compute the labor rate variance.

e. Compute the variable overhead efficiency variance.

f. Compute the variable overhead rate variance.

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