Zippy Inc. Manufactures a fuell additive, Surge which has a stable selling price of $44 per drum. The company has been producing and selling 80,000 drums per month.

Materials:

8 gallons of chemicals @ $2..............$16

1 empty drum....................................$1 $17

Direct labor- 1 hr................................$8

Factory overhead..............................$6

Cost and expenses during September:

Chemicals: 645,000 gallons purchased at a cost of $1,140,000; 600,000 gallons used

Empty drums: 94,000 purchased at a cost of $94,000: 80,000 used

Direct labor: 81,000 hours worked at a cost of $654,480. Factory overhead: $768,000

CALCULATE THE FOLLOWING VARIANCES FOR SEPTEMBER

1. MATERIALS QUANTITY VARIANCE

2. MATERIALS PURCHASE PRICE VARIANCE

3. LABOR EFFICIENCY VARIANCE

4. LABOR RATE VARIANCE