SW has developed the following standards for one of its products:

STANDARD VARIABLE COST CARD ONE UNIT OF PRODUCT
Direct materials: 20 square feet	$100.00
Direct labour: $7 per hour	28.00
Variable overhead: 4 hours	16.00
Total standard variable cost per unit	$144.00

The company records materials price variances at the time of purchase.

The following activities relate to the month of April:

Actual Materials purchased	90,000 square feet at $6.10 per sq. foot
Actual Materials used	82,000 square feet
Actual units sold	6,000 units
Actual Units produced	4,200 units
Budgeted units	4,500 units
Actual Direct labour	15,500 hours at $6.25 per hour
Actual Variable overhead	$59,000

Required:

a. Calculate material price variance and indicate whether it is favorable or unfavorable ( 2 Marks)

a. Calculate the labour efficiency variance and indicate whether it is favorable or unfavorable. (2 Marks)

b. Calculate the variable overhead spending variance and indicate whether it is favorable or unfavorable. (2 Marks)

c. Calculate the variable overhead efficiency variance and indicate whether it is favorable or unfavorable. (2 Marks)