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 (12,000 yards at $12.00 per yard) | $ | 144,000 | |
| Raw materials used | 19,000 | yards | |
| Direct labor costs (10,100 hours at $9.00 per hour) | $ | 90,900 | |
| Actual variable overhead cost | $ | 84,020 | |
| Units produced | 12,500 | units | |
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Standards per unit of product: |
| Raw materials | 1.8 yards at $14.00 per yard |
| Direct labor | .8 hours at $8.50 per hour |
| Variable overhead | $7.00 per direct labor hour |
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| Required: | |
|
Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is |
| a. | Direct materials price variance | $ | |
| b. | Direct materials quantity variance | $ | |
| c. | Direct labor rate variance | $ | |
| d. | Direct labor efficiency variance | $ | |
| e. | Variable overhead rate variance | $ | |
| f. | Variable overhead efficiency variance | $ |
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