Reference no: EM131610478

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.