Zee Corporation has developed the following cost standards for the production of its leather backpacks:

Zee Corporation has developed the following cost standards for the production of its leather backpacks:

The direct materials purchases variance is computed when the materials are purchased. Required: Compute the following variances for Zee.

a. Materials price variance.

b. Materials quantity variance.

c. Labor efficiency variance.

d. Variable overhead rate variance.

Standard Cost Per Backpack $45.00 $27.00 S36.00 Leather (1.5 yards $30 per yard) Direct labor (1.8 hours $15.00 per hour) Variable overhead (1.8 hours x $20.00 per hour) 10,000 17,300 16,440 15,930 $470,184 $241,335 $352,920 Nurnkxa of k.ckzsacks resuxul Direct labor hours incurred Yards of leather purchased Yards of leather used in production Direct labor cost Variable overhead cost Materials price variance Materials quantity variance Labor efficiency variance Variable overhead rate variance