Kaneohe Corp uses a standard costing system and manufactures hula doll lamps. Standard costs for its largest selling product, a mid$-$size table lamp, are:

Item

Variable overhead $0\mathrm{.}6$hr @            $$8\mathrm{.}00/$hour $$4\mathrm{.}80$

Fixed overhead $0\mathrm{.}9$hr @                 $$4\mathrm{.}00/$hour $3\mathrm{.}60$

Direct materials $2\mathrm{.}0$kg @                $$3\mathrm{.}25/$kg $6\mathrm{.}50$

Direct labour $0\mathrm{.}7$hr @                     $$12\mathrm{.}50/$hour $8\mathrm{.}75$

Standard cost per unit                   $$23\mathrm{.}65$

During the last fiscal year ended December $31,2023,$

Kaneohe reported the following information in connection with the production of this table lamp: 

 

$1.$ Actual VOH incurred:                                              $$494,000$

$2.$ Actual FOH incurred:                                              $$344,000$

$3.$ Production:                                                              $100,000$ units

$4.$ Direct material purchases:                                   $210,000$ kg at $$3\mathrm{.}05/$kg

$5.$ Beginning inventory of direct material:              $18,000$ kg $($carried at standard cost$).$

$6.$ Total direct labour used: $\mathrm{ \; \; \; \; \; \; \; \; \; \; \; \; \; \; \; \; \; \; \; \; \; \; 7}1,000$ hours, at a cost of             $$923,000$

No ending inventory

The company$$s factory can produce $120,000$ table lamps a year, but a denominator level was set at $90,000$ units for the year ended December $31,2023.$ Cost driver is direct labour hours.

Requirement $1.$

Using either the $$formula$$ or the $$columnar method$,$ compute the following variances. Include whether variances are favourable $($F$)$ or unfavourable $($U$)$

a$)$ VOH spending and efficiency variances

b$)$ FOH spending variance

c$)$ Direct materials price and efficiency variances

d$)$ Direct labour rate and efficiency variances and production volume variance