Solve the below problem:
Q: Thompson Company uses a standard cost system for its single product. The following data are available:
Actual experience for the current year:
Purchases of raw materials (30,000 yards at $2.50 per yard) $75,000
Raw materials used 20,000 yards
Direct labor costs (10,000 hours at $8.60 per hour $86,000
Actual variable overhead cost $35,9000
Units produced 4,800 units
Standards per unit of product:
Raw materials 4 yards at $2.6 per yard
Direct labor 2 hours at $9.00 per hour
Variable overhead $21.6 per direct labor hour
Required:
Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase:
Direct materials price variance.
Direct materials quantity variance.
Direct labor rate variance.
Direct labor efficiency variance.
Variable overhead rate variance.
Variable overhead efficiency variance.