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

Graybeal Corporation makes a product with the following standard costs:

Std Qty or Hours Std Price or Rate

Direct Materials 4.3 ounces $6.00 per ounce

Direct Labor 0.7 hours $21.0 per hour

Variable Overhead 0.7 hours $7.00 per hour

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

Actual ouput.......................................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

**Actual total price of raw materials = $96,860 **Actual total cost of direct labor = $49,713

**Actual total cost of variable overhead = $16,571

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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