Lindsay Corp. has developed the following standard costs for its product for 2022:

LINDSAY CORPORATION

Standard Cost Card

Product A

Cost Component Standard Quantity Standard Price = Standard Cost Direct materials 1.5 kilograms $4 $6 Direct labour 2 hours 11 22 Manufacturing overhead 2 hours 7 14 $42

The company expected to produce 15,000 units of Product A in 2022 and work 75,000 direct labour hours.

Actual results for 2022 are as follows:

14,700 units of Product A were produced.

Actual direct labour costs were $340,000 for 34,000 direct labour hours worked. Actual direct materials purchased and used during the year cost $89,000 for 23,000 kilograms.

Actual variable overhead incurred was $179,000 and actual fixed overhead incurred was $87,000.

Instructions Calculate the following variances showing all computations to support your answers. Indicate whether the variances are favourable or unfavourable.

a) Materials quantity variance. b) Total direct labour variance. c) Direct labour quantity variance. d) Direct materials price variance. e) Total overhead variance.