Parrott Int. manufacturers a single product in which variable manufacturing overhead is assigned on the basis of direct labor hours. The company standard cost system and hatered the following sandards for one unit of product Standard Quentity Direct inters 25 pounds Standard Price arate Sato per pound 11.00 per nou Gabor 06 hour V MOH 06 hour Durint Marth, the following activity was recorded by the company The core any produced scoring the month ATD.00 pounds of men were purchased at 22.000 A pourds matere used in to Marth. During Mar 2.000 heurt were word at St.So per pour Van during that atrace Vance - SP Mauanta Mariance - 0.50 Vance AHLAR SA icent Variante Varance AMANSA VSRIAH 14 15 The company produced 3.000 units during the month. A total of 8.000 pounds of material were purchased at a cost of $22.000. A total of 7.000 pounds of material were used in production during March During March, 2.000 direct labor hours were worked at a rate of 511.50 per hour. Variable MOH costs during March totaled 51.800 Formulas: Materials Price Variance - AQ CAP.SP) Materials Quantity Variance - SP IAQ-SQ) Labor Rate variance - AH (AR-SR) Labor Efficiency Variance - SR (AHASH Variable Overhead Rate Variance - AH (AR-SR) Variable Overhead Efficiency Variance SRAM.SH) The materials price variance for March 1: A $1,750 favorable 8.51.750 unfavorable C. $2.000 favorable 0.52.000 unfavorable