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Walthaus Corporation's standard cost sheet is as follows: Direct material 4 feet at $5.00 per foot Direct labor 3 hours at $10.00 per hour Variable

Walthaus Corporation's standard cost sheet is as follows:

Direct material 4 feet at $5.00 per foot
Direct labor 3 hours at $10.00 per hour
Variable overhead 3 hours at $2.00 per hour
Fixed overhead 3 hours at $1.00 per hour

Additional information:

  • Actual results: purchased 30,000 lbs of material at $5.25 per lb. (there were no beginning or ending material inventories); direct labor cost incurred was 26,000 hours at $9.75 per hour; actual variable overhead incurred, $50,000; and actual fixed overhead incurred $43,000.
  • Overhead is applied to work-in-process on the basis of direct labor hours.
  • The company produced 8,000 units of product during the period.
  • The number of estimated hours for computing the fixed overhead application rate totaled 45,000 hours.

What are the material price and efficiency variances?

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