Problem 2

During July, PKs Fine Feline Foods produced 154 batches of its gourmet kitten formula. Each batch weighs 1,000 pounds. To produce this quantity of output, the company purchased and used 158,700 pounds of direct material at a total cost of $ 603,060. It also incurred direct labor costs of $ 37,200 for the 3,100 hours worked by employees on the kitten formula crew. Variable manufacturing overhead incurred during July totaled

$ 30,900. Standard cost information per 1,000-pound batch of kitten formula follows:

Direct materials - $ 3.90 per pound

Standard quantity allowed per batch 1,025 pounds

Direct labor rate - $ 11.50 per hour

Standard hours allowed per batch 19 D/L hours

Variable OVH rate - $ .20 per pound

Compute the following:

direct materials price and quantity variances

direct labor rate and efficiency variances

variable overhead spending and efficiency variances