Star Toys Limited, a manufacturing company, uses a standard costing system for planning and control purposes. Details of the standard costs for each unit of goods produced are as follows:

Direct materials (5 kg at $6.00)

$30

Direct labour (3 hours at $15.00)

$45

Manufacturing overhead:

Variable (3 direct labour hours @ $6.00)

$18

Fixed (3 direct labour hours @ $12.00)

$36

Total standard cost

$129

The budgets prepared for the last quarter revealed that the budgeted fixed overhead was $90,000 with a budgeted production volume of 2,500 units.

After the quarter ended, the accountant of the company extracted the following actual results from the costing system for the last quarter:

Production volume 3,000 units

Direct materials (18,000 kg at $6.30) $113,400

Direct labour (8,900 hours at $15.60) $138,840

Manufacturing overhead:

Variable $51,000

Fixed $93,000

Required:

For the purpose of preparing the monthly performance report for the last month, calculate the following cost variances:

(a)Direct material price variance

(b)Direct material quantity variance

(c)Direct labour rate variance

(d)Direct labour efficiency variance

(e)Variable overhead spending variance

(f)Variable overhead efficiency variance

(g)Fixed overhead budget variance

(h)Fixed overhead volume variance