standard price of material is $4.50 per pound, the purchasing agent forgot to order it in time from the regular supplier and was forced to buy from another source at a price $.50 per pound higher than standard. The production supervisor said that he had a difficult time with the material. Much of it was of inferior quality and had to be discarded. Some of the poor material was put into process and jammed up the machines. He estimates that he used 10% more material than he should have because of these problems and wasted 150 direct labor hours because of machine downtime. The materials usage standard is two pounds per finished unit, but it took 9.800 pounds to produce 4,500 finished units. The labor standard allows 1/3 hour per finished unit. This time it took 1,700 hours. Although the direct labor standard rate is $8 per hour, the workers were granted a 5% raise, effective October 1 . Someone forgot to include it in the budget. Variable factory overhead is applied at the rate of $4 per direct labor hour. Total variable overhead cost was $7,000. Determine the following variances: (a) Materials price, materials usage and total material variance. 5 A S SS Price Quantity Materials ^ (b) Labor rate, labor efficiency, and total labor variance. AA A S S S Rate Time Labor i (c) Overhead spending, overhead efficiency, and total overhead variance. A A A S S S Spending Efficiency Overhead