Leerar Corporation makes a product with the following standard costs: Inputs Direct Materials Direct Labor Variable overhead a. b. C. e. Standard Quantity or Hours 8.1 ounces 0.5 hours 0.5 hours Required: (Show your calculations to ensure any partial credit that may be due to you.) Compute the direct materials price variance. Compute the direct materials quantity variance. Compute the direct labor rate variance. Compute the direct labor efficiency variance. Compute the variable overhead spending variance. Compute the variable overhead efficiency variance. f. Standard Price or Rate $3.00 per ounce $18.00 per hour $2.00 per hour In December the company produced 4,200 units using 34,870 ounces of the direct material and 1,900 direct labor-hours. During the month, the company purchased 39,700 ounces of the direct material at a total cost of $111,160. The direct materials purchases variance is computed when the materials are purchased. The actual direct labor cost for the month was $35,530 and the actual variable overhead cost was $3,990. The company applies variable overhead on the basis of direct labor-hours.

Leerar Corporation makes a product with the following standard costs: - In December the company produced 4,200 units using 34,870 ounces of the direct material and 1,900 direct labor-hours. - During the month, the compary purchased 39,700 ounces of the direct material at a total cost of $111,160. The direct materials purchases variance is computed when the materials are purchased. - The actual direct labor cost for the month was $35,530 and the actual variable overhead cost was $3,990. - The company applies variable overhead on the basis of direct labor-hours. Required: (Show your calculations to ensure any partial credit that may be due to you.) a. Compute the direct materials price variance. b. Compute the direct materials quantity variance. c. Compute the direct labor rate variance. d. Compute the direct labor efficiency variance. e. Compute the variable overhead spending variance. f. Compute the variable overhead efficiency variance