Owen Jackson Version B Problem VII - Variance Analysis 25 points 15 minutes Cor t ion has developed the following cost standards for the production of its leather backpacks: Standard Quantity Standard Pries/Rate Leather 0.8 yards $21.00 per yard Direct Labor 1.4 hours $8.00 per hour Variable overhe head at Zee is applied on the basis of direct labor hours at a rate of S15.00 per hour. The actual results for last month were as follows: Yards of Leather purchased and used Actual Cost of Leather per yard Direct Labor hours incurred Direct Labor rate per hour Variable Overhead cost 13.800 $21.25 19,800 $8.75 $285,670 15,000 Number of Backpacks Produced Instructions: Compute the following variances: a. Direct materials price variance. 21-21.25 x 13800 - 3,450)unforcble b. Direct materials quantity variance. (SP.AD AG (12,000 13800). 21.00 37,808 enfarcable c. Direct labor price variance. (8-8.75) - 19800 =(-14,800 unforamable d. Direct labor quantity variance. e. Total overhead variance