Varson Company produces a chemical used in dry cleaning. Its accounting system uses standard costs.

The standards per can of chemical call for $2$ gallons of material and $1\mathrm{.}5$ labor hours. The standard cost per

gallon of material is $$6\mathrm{.}50.$ The standard cost per labour hour is $$9.$ Overhead is applied based on direct

labour hours. Expected production is $15,000$ cans with fixed overhead per year of $$45,000$ and variable

overhead of $$7\mathrm{.}50$ per can.

During $2013,17,500$ cans were produced; $37,000$ gallons of material were purchased at a cost of

$$244,200$; $36,000$ gallons of material were used in production. The cost of direct labour incurred in $2013$

was $$233,490$ based on an average actual wage of $$9\mathrm{.}05$ per hour. Actual fixed overhead was $$47,000$ and

actual variable overhead was $$126,420$ for $2013.$

Required $($indicate each variance as favourable or unfavourable$)$:

$($a$)$ Calculate the material price variance.

$($b$)$ Calculate the material usage variance.

$($c$)$ Calculate the labour rate variance.

$($d$)$ Calculate the labour efficiency variance.

$($e$)$ Calculate the variable overhead spending variance.

$($f$)$ Calculate the variable overhead efficiency variance.

$($g$)$ Calculate the fixed overhead spending variance.

$($h$)$ Calculate the fixed overhead denominator variance.