Problem - The Koski Company has established standards as follows:
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Direct material
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3.40 pounds @ $5.40/pound = $18.36 per unit
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Direct labor
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2.00 hours @ $9.40/hour = $18.80 per unit
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Variable overhead
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2.00 hours @ $6.40/hour = $12.80 per unit
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Actual production figures for the past year were as follows:
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Units produced
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640
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Direct materials used
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2,480 pounds
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Direct materials purchased (4,400 pounds)
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$24,200
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Direct labor cost (1,090 hours)
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$10,464
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Variable overhead cost incurred
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$6,867
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Calculate the following:
1. The materials price variance is?
2. The materials quantity variance is?
3. The labor rate variance is?
4. The labor efficiency variance is?
5. The variable overhead rate variance is?
6. The variable overhead efficiency variance is?