Problem 8-24A Comprehensive Variance Analysis [LO4, LO5, LO6]

Helix Company produces several products in its factory, including a karate robe. The company uses a standard cost system to assit in the control of costs. According to the standards that have been set for the robes, the factory should work 780 direct labor-hours each month and produce 1,950 robes. The standard costs associated with this level of production are as follows:

	Total	Per Unit of Product
Direct Materials....	$35,490	$18.20
Direct Labor....	$7,020	3.60
Variable Manufacturing overhead (based on direct labor-hours)....	$2,340	1.20
		$23.00

During April, the factory worked only 760 direct labor-hours and produced 2,000 robes. The following actual costs were recorded during the month:

	Total	Per Unit of Product
Direct Materials (6,000 yards)....	$36,000	$18.00
Direct Labor....	$7,600	3.80
Variable Manufacturing Overhead....	$3,800	1.90
		$23.70

At standard, each robe should require 2.8 yards of material. All of the materials purchased during the month were used in production.

Required

Computer the following variances for April:

1. The materials quantity and price variances

2. The labor efficiency and rate variances

3. The variable manufacturing overhead efficiency and rate variances