Sven Enterprises is a large producer of gourmet pet food. During April, it produced 147 batches of puppy meal. Each batch weighs 1,000 pounds. To produce this quantity of output, the company purchased and used 148,450 pounds of direct materials at a cost of $593,800. It also incurred direct labor costs of $17,600 for the 2,200 hours worked by employees on the puppy meal crew. Manufacturing overhead incurred at the puppy meal plant during April totaled $3,625, of which $2,450 was considered fixed. Svens standard cost information for 1,000-pound batches of puppy meal is as follows.

Direct materials standard price		4.20	per pound
Standard quantity allowed per batch		1,020	pounds
Direct labor standard rate		8.50	per hour
Standard hours allowed per batch		14.00	direct labor hours
Fixed overhead budgeted		2,800	per month
Normal level of production		140	batches per month
Variable overhead application rate		9.00	per batch
Fixed overhead application rate ($2,800 140 batches)		20.00	per batch
Total overhead application rate		29.00	per batch

Instructions

a. Compute the materials price and quantity variances.

Materials Price Variance: 29690 Quantity variances: 6258

b. Compute the labor rate and efficiency variances.

labor rate: 1100

Efficiency variances: (1207)

c. Compute the manufacturing overhead spending and volume variances.

Overhead spending variances: 498

Overhead volume variances: 140

d. What might have caused these variances? Who might be responsible? What questions would this bring up, and who might have the answers?