Summertime, Inc. manufactures changeable type-heads for use on industrial printers. Each type-head is in a set consisting of the lead alloy type-head itself, a cover for the key on the printer keyboard, and a container box to hold the two items. At the beginning and end of June, there were no materials inventories. The following standards were developed for each unit:

Item

Materials:

Lead alloy (3 oz. @ $.20)..........

Cover materials (6 oz. @ $.04).....

Container boxes (1 @ $.10).........

Direct labor (1/4 hr. @ $12 per hr)......

Overhead ($9 per direct labor hour)......

Total cost.........................

Standard per Unit

$ .60

.24

.10

3.00

2.25

$6.19

Annual production is estimated at 50,000 units, with fixed overhead of $15,000.

During the past year, the following costs were incurred to produce 40,000 units:

Materials:

Lead alloy122,000 oz. @ $.22

Cover materials235,000 oz. @ $.04

Container boxes40,500 @ $.09

Direct labor9,500 hrs. @ $12.50

Overhead$90,000

REQUIRED: Compute the:

A. Materials price variance for each item.

B. Materials quantity variance for each item.

C. Labor rate variance.

D. Labor efficiency variance.