Tara, Inc. manufactures a single product in which variable manufacturing overhead is assigned on

the basis of direct labor hours.The company uses a standard cost system and has established the

following standards for one unit of product:

StandardStandard PriceStandard

Quantityor RateCost

Direct materials.......................... 3.0 pounds$3.80 per pound$11.40

Direct labor..............................0.75hours$12.00 per hour$9.00

Variable manufacturing overhead....0.75 hours$10.00 per hour$7.50

During March, the actual results were as follows:

Number of units produced...........................12,500

Direct labor hours incurred...........................10,200

Pounds of direct materials purchased...............42,000

Pounds of direct materials used in production.....38,200

Cost of direct materials purchased..................$157,920

Direct labor cost.......................................$119,850

Variable overhead cost................................$98,940

Required:

(a) Calculate the materials price variance and determine whether it is favorable or unfavorable.

(b) Calculate the materials quantity variance and determine whether it is favorable or unfavorable.

(c) Calculate the labor rate variance and determine whether it is favorable or unfavorable

(d) Calculate the labor efficiency variance and determine whether it is favorable or unfavorable

(f) Calculate the variable overhead rate variance and determine whether it is favorable or unfavorable.

(e) Calculate the variable overhead efficiency variance and determine whether it is favorable or

unfavorable.