"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 $$28,700$ overall manufacturing cost variance is only

$2\mathrm{.}0\%$ of the $$1,435,000$ 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 with a standard cost card as follows:

The following additional information is available for the year just completed:

a$.$ The company manufactured $25,000$ units during the year.

b$.$ A total of $74,000$ feet of material was purchased during the year at a cost of $$3\mathrm{.}20$ per foot. All of this material was used to

manufacture the $25,000$ units produced. There were no beginning or ending inventories.

c$.$ The company worked $33,000$ direct labor$-$hours at a direct labor cost of $$10\mathrm{.}70$ per hour.

d$.$ Overhead is applied to products based on standard direct labor$-$hours. Data relating to manufacturing overhead costs follow:

Required:

Compute the materials price and quantity variances.

Compute the labor rate and efficiency variances.

For manufacturing overhead compute:

a$.$ The variable overhead rate and efficiency variances.

b$.$ The fixed overhead budget and volume variances.