Owens-Jackson Version B Problem VII - Variance Analysis Zec Coporation has developed the following cost standards for the production of its leather backpacks: 25 points 15 minutes Standard Quantity 0.8 yards 1.4 hours Standard Price/Rate $21.00 per yard $8.00 per hour Leather Direct Labor Varjable overhead at Zee is applied on the basis of direct labor hours at a rate of $15.00 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. - 3,4s0)nfreble a1-2125 x 13800 (BP.AP) AQ (12 00- B800)- 21.00 -37,8efakebe b. Direct materials quantity variance. C. Direct labor price variance. 8-8.75) 19800-14,80 unfoxarable (8- d. Direct labor quantity variance. e. Total overhead variance