middle earth company uses a standard cost system for its single product. the following data are available. compute the variable overhead efficiency variance and the variance overhead rate variance.

21) Middle Earth Company uses a standard cost system for its single product. The following data are available: Actual experience for the current year: Purchases of raw materials (16,000 yards at $14.50 per yard) $232,000 Raw materials used 14,000 yards Direct labor costs (10,200 hours at $10 per hour) $102,000 Actual variable overhead costs $84,150 Units produced 12,600 units Standards per unit of product: Raw materials 1.1 yards at $15 per yard Direct labor .8 hours at $9.50 per hour Variable overhead .8 hours at $8 per hour Required: Compute each of the following items, showing all of your work. Indicate whether favorable or unfavorable (18 pts). DMQV= LSQ - Rm used & Stani Price Compute the direct materials quantity variance. (13,680-14000) x 15 -320*15 =-4800 4800 U