'puches Co, produces and sells a single product he standard cost cad jor the praduat is sunleshalun.

Standard Cost Card - Per Unit

Direct Materials, 8 Yards at $6.50 per Yard

Direct Labour, 2.5 Direct Labour-Hrs, at $12 per Direct Labour-Hr.

Variable Overhead, 2.5 Direct Labour-Hrs. at $4 per Direct Labour-Hr.

Fixed Overhead, 2.5 Direct Labour-Hrs, at $4 per Direct Labour-Hr.

Standard Cost Per Unit

$52

30

10

10

$102

The following additional information is available for the year just completed;

- The company manufactured 22,000 units of product during the year.

- A total of 180,000 yards of material was purchased during the year at a cost of $6.25 per yard. All of this

material was used to manufacture the 22,000 units. There were no beginning or ending inventories for the

c. - The company worked 54,500 direct labour-hours during the year at a cost of $12 per hour.

d.

- Overhead cost is applied to products on the basis of direct labour-hours. Data related to manufacturing ove

costs follow:

Denominator Activity Level (Direct Labour-Hours)

Budgeted Fixed Overhead Costs

Actual Fixed Overhead Costs

Actual Variable Overhead Costs

52,000

$208,000

$205.000

$234,350

Required:

1) Compute the direct materials price and usage variances for the year.

2) Compute the direct labour rate and efficiency variances for the year.

3) For manufacturing overhead, compute the following:

a) The variable overhead spending and efficiency variances for the year.

b) The fixed overhead spending and volume variances for the year.