I. DIRECT COST AND OVERHEAD COST VARIANCE ANALYSIS Goldilock Inc. produces safe deposit boxes. During February 20X2, the company produces 1,050 units of product and incurred the following actual costs. Variable overhead $48.000 Actual labor cost (3.000 direct-labor hours) 70,500 Actual material cost (2.200 lbs of metal purchased and used) 50,600 One unit of safe deposit box is planned to use 2 lbs of metal and consume 3 direct-labor hours. Overhead is budgeted and applied using direct labor hour. Standard cost information are as follows: Standard costs per safe deposit box Direct labor $75 Direct material 42 Variable overhead 45 Required: 1. Calculate price and efficiency variance for direct material. (5%) 2. Calculate price and efficiency variance for direct labor. (5%) 3. Calculate spending and efficiency variance for variable overhead. (5%) 4. Provide possible explanation on the result! (5%)