Last year, Lexcorp company budgeted for production and sale of 8670 fubars. Actual production and sales was 7200 fubars for $378 each. Each item was budgeted to use 3 direct labor hour(s) and 6 piece(s) of material. Lexcorp expected to pay $4.00 per piece and $13.00 per hour. Lexcorp did not have any beginning raw materials inventory. They purchased 34560 pieces for a total of $165888. Actual production required the following: 34180 pieces of material Direct labor costs of $202176 (the actual labor rate was $11.70 per hour)

Compute and label each of the following variances. Only a couple of questions require answers here, but do them all if you have time. Note: When amount of materials purchased is different than amount of materials used, -Compute the price variance with AQ = amount purchased. -Compute the usage variance with AQ = amount used. This approach records the price variance as early as possible. (The price and usage variance will no longer add up to the total flexible budget variance.) Materials price variance = Materials usage variance = Labor rate variance (on paper) Labor efficiency variance (on paper)