5. Wilson Corp. uses a standard costing system. The following information is available:

Standards for 1 unit

Materials 10 lbs @ $2/lb.

Labor 2 hours @ $20/hr.

Actual Results

Manufactured 10,000 units

Materials purchased 120,000 lbs @ $1.80/lb.

Materials used 105,000 lbs

Labor hours 18,500@ $18/hr.

Material spending variance = $14,000 favorable

Required - Calculate:

1. Material purchase price variance
2. Material quantity variance
3. Labor rate variance
4. Labor efficiency variance