"Wonderful! Not only did our salespeople do a good job in meeting the sales budget this year, but our production people did a good job in controlling costs as well, said Kim Clark, president of Martell Company. Our $29,250 overall manufacturing cost variance is only 1.0% of the $2,925,000 standard cost of products made during the year. That's well within the 3% parameter set by management for acceptable variances. It looks like everyone will be in line for a bonus this year." The company produces and sells a single product. The standard cost card for the product follows: Inputs (1) Standard Quantity or Hours (2) Standard Price or Rate Standard Cost (1) (2) Direct materials 2.50 feet $ 3.30 per foot $ 8.25 Direct labor 2.3 hours $ 10 per hour 23.00 Variable overhead 2.3 hours $ 3.00 per hour 6.90 Fixed overhead 2.3 hours $ 5.00 per hour 11.50 Total standard cost per unit $ 49.65 The following additional information is available for the year just completed: The company manufactured 25,000 units of product during the year. A total of 60,000 feet of material was purchased during the year at a cost of $3.70 per foot. All of this material was used to manufacture the 25,000 units produced. There were no beginning or ending inventories for the year. The company worked 60,000 direct labor-hours during the year at a direct labor cost of $9.60 per hour. Overhead is applied to products on the basis of standard direct labor-hours. Data relating to manufacturing overhead costs follow: Denominator activity level (direct labor-hours) 55,000 Budgeted fixed overhead costs $ 275,000 Actual variable overhead costs incurred $ 186,000 Actual fixed overhead costs incurred $ 270,000 Required: 1. Compute the materials price and quantity variances for the year. 2. Compute the labor rate and efficiency variances for the year. 3. For manufacturing overhead compute: a. The variable overhead rate and efficiency variances for the year. b. The fixed overhead budget and volume variances for the year.