Liquid manufactures a single product that has a standard materials cost of $20 (2 units of raw materials at $10 per unit), standard direct labor cost of $18 (1 hour per unit), and standard variable overhead cost of $8 (based on direct labor-hours). Fixed overhead is budgeted at $34,000 per month. The following data pertain to operations for May of this year:

Raw materials purchased	3,600 units costing $31,620
Raw materials used in production of 1,500 units of finished product	3,200 units of raw materials
Direct labor used	1,500 hours costing $30,000
Variable overhead costs incurred	$11,920
Fixed overhead costs incurred	$35,000

Required:

a.	Compute the following variances (show calculations):

	1.	Materials quantity variance
	2.	Labor rate variance
	3.	Labor efficiency variance
	4.	Variable overhead spending variance
	5.	Variable overhead efficiency variance