Littrell Company produces chairs and has determined the following direct and indirect cost categories and standard cost, based on a static budget of 5,000 units made and sold:

Category SQ SP

Direct Materials 1.00 lb $7.50

Direct Manufacturing Labor 0.30 hr 9.00

Variable Manufacturing Overhead 0.50 MH 3.00

Fixed Manufacturing Overhead 0.50 MH 10.00

Actual performance for the company is shown below:

Actual output: (in units) 4,000

Direct Materials:

Pounds purchased 4,100

Pounds used 3,900

Actual price per lb $7.75

Direct Manufacturing Labor:

Labor-hours 1,240

Actual rate per hour $9.25

Variable Manufacturing Overhead:

Machine-hours 2,100

Actual rate per hour $2.80

Fixed Manufacturing Overhead:

Actual cost $24,550

Required: Show Calculations for all.

A. What are the price (based on purchase) and quantity variances of the direct materials? Please provide a possible explanation for this pattern of material variances.

B. What are the rate and efficiency variances of the direct manufacturing labor?

C. What are the rate and efficiency variances for variable manufacturing overhead?

D. What are the spending and volume variances for fixed manufacturing overhead?