Valves4You Inc. manufactured 15,800 control values during March and have the following actuals:

Direct labour	82,160 hours @ $10.95 per hour
Direct material used	44,240 kg @ $5.20 per kg
Variable overhead	$720,900
Fixed overhead	$1,121,400

The company uses a standard cost system and has set the following standards:

Budgeted production (units)	16,000 units
Direct material	3 kilograms @ $5 per kilogram
Direct labour	5 hours @ $11.25 per hour
Variable overhead	$800,000
Fixed overhead	$1,040,000

Variable and fixed overhead is allocated to products using direct labour hours as the cost driver.

a) Provide each of the following variances and indicate if the variances are favourable (F) or unfavourable (UF). a) Direct labour rate variance, also called a spending variance.

b) Direct labour efficiency variance.

c) Fixed overhead spending variance.

d) Fixed overhead volume variance. HINT: Calculate the fixed overhead rate!