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Refreshers Limited specialises in making fresh juices by hand with organic fruits. The company has developed the following standard costs: Standard quantity or hours Standard

Refreshers Limited specialises in making fresh juices by hand with organic fruits. The company has developed the following standard costs:

Standard quantity or hours

Standard price or rate

Direct material

1.3

kg

$6.00

per litre

Direct labour

0.6

hours

$19.00

per hour

Variable overhead

0.6

hours

$3.00

per hour

During April, Refreshers Limited made 4,100 bottles of fresh juice and used 5,380 kg of direct material and 2,710 direct labor-hours. In total, 6,000 kg of direct material was purchased during the month at $5.80 per kg. The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 per hour.

Variable overhead is applied based on direct labor-hours.

Compute the following:

A) Labour efficiency variance

B) Labour rate variance

C) Variable overhead rate variance

D) Variable overhead efficiency variance

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