Need work with proper formulas: Thank you

Stratton, Ltd. Manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirt is as follows.

Standard Price Standard Quantity Standard Cost

Direct materials $4 per yard 1.5 yards $6.00

Direct labor $12 per DLH 0.5 DLH 6.00

Variable overhead $4 per DLH 0.5 DLH 2.00

Fixed overhead $6 per DLH 0.5 DLH 3.00

$17.00

Sandy Robinson, operations manager, was reviewing the results for November when he became upset by the unfavorable variances he was seeing. In an attempt to understand what had happened, Sandy asked CFO Suzy Summers for more information. She provided the following overhead budgets, along with the actual results for November.

The company purchased and used 80,200 yards of fabric during the month. Fabric purchases during the month were made at $3.90 per yard. The direct labor payroll ran $319,725, with an actual hourly rate of $12.25 per direct labor hour. The annual budgets were based on the productional hourly rate of $12.25 per direct labor hour. The annual budgets were based on the production of 50,000 shirts, using 250,000 direct labor hours. Though the budget for November was based on 50,000 shirts, the company actually produced 52,000 shirts during the month.

Variable Overhead Budget

Annual Budget Per Shirt November-Actual

Indirect material $450,000 $0.90 $49,200

Indirect labor 300,000 $0.60 31,400

Equipment repair 200,000 $0.40 20,500

Equipment power 50,000 $0.10 6,900

Total 1,000,000 $2.00 $108,000

Fixed Overhead Budget

Annual Budget November-Actual

Supervisory salaries $260,000 $22,000

Insurances 350,000 27,500

Property Taxes 80,000 6,500

Depreciation 320,000 26,000

Utilities 210,000 20,300

Quality inspection 280,000 25,000

Total $1,500,000 $127,300

Required

a. Calculate the direct materials price and quantity variances for November.

b. Calculate the direct labor rate and efficiency variances for November.

c. Calculate the variable overhead spending and efficiency variances for November.

d. Calculate the fixed overhead spending variance for November.

e. Provide an explanation for each variance you calculated.

f. Which of these variances should Sandy be held responsible for? Why?