Rardin Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate
Direct materials 7.4 ounces $8.00 per ounce
Direct labor 0.3 hours $16.00 per hour
Variable overhead 0.3 hours $7.00 per hour
The company reported the following results concerning this product in July.
Actual output 2,200 units
Raw materials used in production 16,420 ounces
Purchases of raw materials 17,900 ounces
Actual direct labor-hours 720 hours
Actual cost of raw materials purchases $141,410
Actual direct labor cost $12,528
Actual variable overhead cost $5,112
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
Required:
a. Compute the materials quantity variance.
b. Compute the materials price variance.
c. Compute the labor efficiency variance.
d. Compute the labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance.