Spam Inc. had the following standard costs and plans for fiscal current year for the production' of custom meat products
Plan 500,000 Plan
Direct Material .5 lbs meat per unit at $1.20 per lb
Direct Labor .6 hrs. at $12 per hour
Overhead $3.50 per unit variable ovhd
$600,000 fixed ovhd
Actual
490,000 units
235,200.00 lbs $272,832.00
308,700.00 hrs $3,627,225.00
$1,690,500.00 variable ovhd
$612,000.00 fixed ovhd
Calculate price and efficiency variances for all of the above and briefly explain what they mean and why the variances may have occurred.