The standard costs and budget figures relating to production of Playfairs single product are:

Direct material 2 kgs @ $7.25 per kg $ 14.50

Direct labour of an hour @ $18 per hour $ 4.50

Factory Overhead $ 11.50

Standard Cost $ 30.50

Normal production: 12,000 units

Budgeted fixed overhead: $60,000

Overhead is applied on the basis of standard direct labour hours.

Actual data for the period:

Production: 12,250 units

Material purchased: 30,000 kgs @ $7.30 per kg

Material issued to production: 24,515 kgs

Direct labour cost: 3,064 hours @ $18.25 per hour

Factory overhead: $139,420 ($62,000 fixed)

Required

a) Compute the following variances (show calculations),

(i) Direct material price variance

(ii) Direct material usage variance

(iii) Direct labour rate variance

(iv) Direct labour efficiency variance

(v) Variable overhead spending variance

(vi) Variable overhead efficiency variance

(vii) Fixed overhead budget variance

(viii) Fixed overhead volume variance