Part 2 Foster Corporation uses a standard cost system. There is no beginning or ending work in process, and finished goods inventory balances. The following information was provided concerning the one product produced by this company for the period that just ended: This company used Direct labor hours as the cost driver for the application of overhead.

Actual price per kilogram $2.96

Actual kilograms of material used 32,000

Actual kilograms of material purchased 34,000

Actual hourly labor rate $17.50

Actual hours of production 4,900 labor hrs.

Standard price per kilogram $2.97

Standard kilograms per completed unit 6

Standard hourly labor rate $17.80

Standard time per completed unit 1 Hour

Actual Variable factory overhead $17,500.00

Actual Fixed factory overhead $18,100.00

Standard variable factory overhead rate $3.80 per labor hour

Budgeted fixed overhead $18,400.00

Units completed during the period 4,975

Questions: Please show your work for ALL equations. You have just been hired by a local plastic pool manufacturer to determine if they are controlling their costs. You have decided to use your recent knowledge of variance analysis to assist you in this endeavor. You will analyze the variances as stated in the requirements below. Required:Make sure you do not forget to label each variance U or F.You need to use cell references for your calculations. Variance U or F

1.Calculate the direct materials price and quantity variance.

Material purchase price variance -Material price variance should be based on material purchased, since you want to isolate the variance as soon as possible. Material Quantity variance - Material Quantity variance should be based on materials used, since this is monitoring the production efficiency.

2.Calculate the direct labor rate and efficiency variances.

Direct Labor rate variance

Direct Labor Efficiency variance

3.Variable manufacturing overhead spending and efficiency variances.

Variable overhead spending variance

Variable overhead efficiency variance

4.Fixed manufacturing overhead budget variance.

Fixed Manufacturing overhead budget variance

5.Pick out the one most significant variance that you computed above and explainthe possible causes of this variance and why you chose it.