STANDARD PRODUCTS COMPANY RECOGNIZES VARIANCES FROM STANDARDS AT THE EARLIEST OPPORTUNITY, AND THE QUANTITY OF DIRECT MATERIALS PURCHASED IS EQUAL TO THE QUANTITY USED. THE FOLLOWING INFORMATION IS AVAILABLE FOR THE MOST RECENT MONTH.

DIRECT MATERIAL DIRECT LABOR

STANDARD QUANTITY/UNIT 6.00 POUNDS 2.5HOURS

STANDARD PRICE/POUND $8.10/POUND

STANDARD PRICE/HOUR $8.00/HOUR

ACTUAL QUANTITY/UNIT 6.25 POUNDS 2.8 HOURS

ACTUAL PRICE/POUND $8.00/POUND

ACTUAL PRICE/HOUR $7.50/HOUR

STATIC BUDGET VOLUME 800 UNITS

ACTUAL VOLUME 900 UNITS

ACTUAL OVERHEAD $11,000

STANDARD VARIABLE OVERHEAD $5/UNIT

STANDARD FIXED OVERHEAD $5,600

A. CALCULATE THE DIRECT MATERIAL PRICE AND VOLUME VARIANCES:

PRICE VARIANCE

VOLUME VARIANCE

B.CALCULATE THE DIRECT LABOR RATE AND EFFICIENCY VARIANCES:

RATE VARIANCE

EFFICIENCY VARIANCE

C. CALCULATE THE VARIABLE OVERHEAD SPENDING AND EFFICIENCY VARIANCES:

VARIABLE OVERHEAD SPENDING VARIANCE

VARIABLE OVERHEAD EFFICIENCY

D. CALCULATE THE FIXED OVERHEAD BUDGET AND VOLUME VARIANCES:

FIXED OVERHEAD BUDGET VARIANCE

FIXED OVERHEAD VOLUME VARIANCE