Question Orville Company's standard and actual costs per unit are provided below for the most recent period. During this time period 400 units were actually produced. Product Standard Product Actual Cost Cost Materials Standard Metres Unit Price Per Metre 3 $1.50 $4.50 Materials price variance = AQ (AP - SP) Materials quantity variance = SP (AQ-SQ) $124.00 U $60.00 U Actual 3.1 $1.60 $4.96 Direct labour Hours Hourly Rate Standard 2.4 $6.00 $14.40 Direct labour rate variance = AH (AR-SR) Direct labour efficiency variance = SR (AH-SH) $500.00 U $240.00 U Actual 2.5 $6.50 $16.25 Variable overhead Hours Hourly Rate Standard 1.5 $3.40 $5.10 Variable overhead rate variance = AH(AR-SR) Variable overhead efficiency variance = SR(AH-SH) -$168.00 F -$136.00 F Actual 1.4 $3.10 Total unit cost $24.00 $4.34 $25.55 Total Variance $620.00 U 400 AP*AQ-SP*SQ $620.00 U For simplicity, assume there was no inventory of materials at the beginning or end of the period. Required Given the information above, compute the following variances. Also indicate if the variances are favorable or unfavorable. 1. Materials price variance 2. Materials quantity variance 3. Direct labour rate variance 4. Direct labour efficiency variance 5. Variable overhead rate variance 6. Variable overhead efficiency variance =AP*AQ-AQ*SP+AQ*SP-SP*SQ =AQ(AP-SP)+SP(AQ-SQ) First keep AQ no change Then keep SP no change