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HGTC Company uses a standard cost system for its single product. The following data are available: Actual experience for the current year:

HGTC 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 (15,000 yards at $13) $195,000
Raw materials used 12,000 yards
Direct labor costs (10,200 hours at $10) $102,000
Actual variable overhead cost $84,150
Units produced 12,600 units
Standards per unit of product:
Raw materials 1.1 yards at $15 per yard
Direct labor 0.80 hours at $9.50 per hour
Variable overhead $8 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:
a. Direct materials price variance
b. Direct materials quantity variance
c. Direct labor rate variance
d. Direct labor efficiency variance
e. Variable overhead spending variance
f. Variable overhead efficiency variance

This question was asked on Apr 29, 2010.

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