Requirement: 1

Doogan Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate
Direct materials		2.0	grams	$	7.00	per gram
Direct labor		0.6	hours	$	18.00	per hour
Variable overhead		0.6	hours	$	2.00	per hour

The company produced 4,800 units in January using 10,240 grams of direct material and 2,220 direct labor-hours. During the month, the company purchased 10,810 grams of the direct material at $7.10 per gram. The actual direct labor rate was $18.85 per hour and the actual variable overhead rate was $1.95 per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for January is:

Requirement: 2

Doogan Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate
Direct materials		8.6	grams	$	3.20	per gram
Direct labor		0.7	hours	$	32.00	per hour
Variable overhead		0.7	hours	$	8.20	per hour

The company produced 6,400 units in January using 40,510 grams of direct material and 2,500 direct labor-hours. During the month, the company purchased 45,600 grams of the direct material at $2.90 per gram. The actual direct labor rate was $31.30 per hour and the actual variable overhead rate was $8.00 per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The variable overhead rate variance for January is: