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Dewberry Gear Inc. makes athletic wear for men and women. The company uses a standard cost system. The following is the standard cost card for one line of womens athletic wear.
		Quantity for one unit	Standard Rate or Price
	Direct materials (meters)	4.2	$ 9.15	per meter
	Direct labour (hours)	0.75	$ 15.00	per hour
	Variable overhead (hours)	0.9	$ 4.50	per hour
	Fixed overhead (hours)	0.9	$ 5.50	per hour
Overhead application rates are determined on the basis of a normal production volume of 15,000 suits, which is 80% of maximum capacity.
Actual results for July 20x1, during which 18,750 suits were made, are as follows:
		Quantity		Cost
	Direct material purchased	65,000	meters	$633,750	9.75
	Direct materials used	80,500	meters	784,875	9.75
	Direct labour	15,000	hours	225,000	15
	Variable overhead			92,500
	Fixed overhead			112,500
Required:
Calculate the following:
a.	The standard quantity of materials needed to make 18,750 suits.
b.	The standard quantity of labour-hours needed to make 18,750 suits.
c.	The direct materials price variance
d.	The direct materials quantity variance
e.	The direct labour efficiency variance
f.	The variable overhead spending variance
g.	The fixed overhead volume variance

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