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Reenu Company manufactures wigs out of used dental floss. The variable cost standards for wig production developed by Reenu are as follows: Direct materials. Direct
Reenu Company manufactures wigs out of used dental floss. The variable cost standards for wig production developed by Reenu are as follows: Direct materials. Direct labor......... Variable overhead Standard Standard cost quantity per wig per pound hour 3.00 pounds $3.80 0.75 hours $12.00 0.75 hours $10.00 Standard cost per wig $11.40 $9.00 $7.50 Variable overhead at Reenu is based on direct labor-hours. The actual results for the month of October were as follows: Number of wigs produced. 12.500 Direct labor-hours incurred....... 10.200 Pounds of direct materials purchased.. 42,000 Pounds of direct materials used in production... 38,200 Cost of direct materials purchased. $157,920 Direct labor cost. $119,700 Variable overhead cost.. $98,600 a. What is Reenu's materials price variance for October? b. What is Reenu's materials quantity variance for October? C. What is Reenu's labor efficiency variance for October? d. What is Reenu's variable overhead rate variance for October
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