Southridge Jam Co. is a social enterprise that makes small-batch jams and jelly in Niagara, Ontario. The company supports people transitioning out of homelessness by providing job skills, community, and a sense of purpose. Based on the most recent data, the standard variable and fixed manufacturing costs for producing the signature jar of blueberry-lavender jam are as follow:

Standard Quantity/Hours

Standard Price/Rate

Direct materials

0.45 kilograms

$11.00 per kilogram

Direct labour

1.75 hours

$15.50 per hour

Variable manufacturing overhead

1.30 hours

$2.20 per hour

Fixed manufacturing overhead

1.50 hours

$0.60 per hour

In August 2020, the companys bookkeeping records showed the following:

Product: Blueberry-Lavender Jam

Number of jars

1,850

Costs:

Direct materials purchases

852 kilograms

$10.25/kg

Direct labour

3,305 hours

$15.80/hr

Variable overhead

total of

$5,350.00

Fixed overhead

total of

$1,665.00

Instructions

(a) Compute the total overhead variance. (2 marks)

(b) Compute the direct material price and quantity variance. (4 marks)

(c) Compute the direct labour rate and efficiency variances. (4 marks)