Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Steffan Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (2 lb. @ $9.50/lb.) Actual (4,200 lb. @ $10.20/lb.) Direct labor $19 $42,840 Standard (0.5 hr. @ $24/hr.) $12 Actual (970 hrs. @ $23.40/hr.) 22,698 Variable overhead Standard (0.5 hr. @ $6/hr.) Actual $3 Total $34 6,200 $71,738 Assume that the 4,200 lb. of materials purchased were all used in producing the 2,000 completed units. Determine the materials price and efficiency variances, labor rate and efficiency variances, and variable overhead spending and efficiency variances. Materials Variances Actual cost: $ 42,840 Split cost: $ 4,840 x Standard cost: $ 38,000 Materials price $ 2,940 U Materials efficiency $ 1,900 U = Labor Variances Actual cost: $ 22,698 Split cost: $ 1,302 x Standard cost: $ 24,000 Labor rate $ 582 F Labor efficiency $ 720 F Variable Overhead Variances Actual cost: $ 6,200 Split cost: $ 200 x Standard cost: $ 6,000 Variable overhead spending $ 380 U Variable overhead efficiency $ 180 F