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 persq. 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)