The Doormat Division of Clean Sweep Company produces all-vinyl mats. Each doormat calls for 0.5meter of vinyl material; the material should cost $3 per meter. Standard direct labor hours and labor cost per doormat are 0.3 hour and $6 (0.3 hour $20 per hour), respectively. Currently, the division's standard variable overhead rate is $1.50 per direct labor hours, and its standard fixed overhead rate is $0.80 per direct labor hour.
In August, the division manufactured and sold 50,000 doormats. During the month, it used 25,200 meters of vinyl material; the total cost of the material was $73,080. The total actual overhead cost for august were $28,280 of which $18,200 was variable. The total number of direct labor hours worked was 10,800, and the factory payroll for direct labor for the month was $214,920. Budgeted fixed overhead for August was $9,280. Normal monthly capacity for the year was set at 58,000 doormats.
Required
1. Compute for August the
(a) Direct materials price variance,
(b) Direct materials quantity variance,
(c) Direct labor rate variance,
(d) Direct labor efficiency variance,
(e) Variable overhead spending variance,
(f) Variable overhead efficiency variance,
(g) Fixed overhead budget variance, and
(h) Fixed overhead volume variance.