Materials, labor and overhead costs variances. The following data are taken from the company's flexible budget for the current quarter:

Normal activity (direct labor hours) 9,000

Variable OH cost at 9,000 DLH 265,200

Fixed overhead cost 54,000

A standard cost card showing the standard cost to produce one unit of the company's product is given as follows:

Direct materials : 6lbs at 3 18.00

Direct labor : 2 hours at 12 24.00

Overhead : 120% of DL cost 28.80

Standard cost per unit 70.80

During the quarter, the company produced 4,800 units of product and incurred the following costs:

Materials purchased, 30,000 lbs. at 2.90 87,000

Materials used in production (in lbs.) 29,050

Direct labor cost incurred, 10,000 hours at 12.20 122,000

Variable overhead cost incurred 230,000

Fixed overhead cost incurred 55,100

Required: Compute the following with solutions

1. Materials variances using the 2-way method

2. Direct labor variances using the 2-way method

3. Total overhead variance

4. Variable overhead spending variance and efficiency variance

5. Fixed overhead spending idle capacity and efficiency variance