Required:

Compute the following variances for raw materials, direct labour, and variable overhead, assuming that the price variance for materials is recognized at point of purchase:

a. Direct materials price variance. (4)

b. Direct materials quantity variance. (4)

c. Labour rate variance. (4)

d. Labour efficiency variance. (4)

e. Variable overhead rate variance. (4)

f. Variable overhead efficiency variance. (4)

Sunrise Company uses a standard cost system for its single product in which variable overheads are applied based on direct labour hours. The following information is given: Standard costs per unit: Actual performance for the current year