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Use the following to answer the next seven questions. The New Perspectives Lighting Company uses standard costing. The standards for direct materials are 3 pounds

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Use the following to answer the next seven questions. The New Perspectives Lighting Company uses standard costing. The standards for direct materials are 3 pounds per unit at $5 per pound. Standards for direct labor are 1.5 hours per unit at $12 per hour. Overhead is charged to units based on direct labor hours. The standards for variable overhead are 1.5 hours per unit at $2.40 per hour. At the denominator or planning level of 100,000 units, the company has budgeted variable overhead of $360,000. For the year 2022 , the company had actual production of 92,000 units. The 2022 Beginning Finished Goods Inventory was 2,000 units. The 2022 Beginning Materials Inventory was 6,000 pounds of material that had been purchased during 2021 at an average price of $5.05 per pound. The company uses FIFO to assign costs of inventories. During 2022,300,000 pounds of material were purchased at an average price of $5.25 per pound. There were 27,000 pounds in Materials Inventory at the end of 2022. Actual labor was 137,000 hours and a total cost of $1,657,000. Actual overhead cost incurred during 2022 was $330,000 for variable overhead. 1. What is the Direct Materials Price Variance for 2022? a. $75,500 Unfavorable b. $75,000 Unfavorable c. $73,250 Unfavorable d. $72,750 Unfavorable e. None of the Above 2. Compute the Direct Materials Quantity Variance for 2022. a. \$105,000 Unfavorable b. $105,000 Favorable c. $45,000 Unfavorable d. $15,000 Unfavorable e. None of the Above. 3. Compute the Direct Labor Rate Variance for 2022. a. \$1,000 Favorable b. $37,000 Favorable c. $13,000 Unfavorable d. $53,000 Unfavorable e. None of the Above Compute the Variable Overhead Efficiency Variance for 2022. a. \$108,000 Unfavorable b. $88,800 Unfavorable c. $31,200 Favorable d. $2,400 Favorable e. None of the Above

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