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Photo Corporation makes a product with the following standard costs: Standard Standard Price Quantity or...

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Accounting

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Photo Corporation makes a product with the following standard costs: Standard Standard Price Quantity or Hours Inputs or Rate Direct materials 7.8 kilos $1.00 per kilo $18.00 per 0.4 hours Direct labor hour Variable overhead $3.00 per hour 0.4 hours The company reported the following results concerning this product in August. 8,500 units Actual output 65,550 kilos Raw materials used in production 69,000 kilos Purchases of raw materials 3,410 hours Actual direct labor-hours Actual cost of raw materials purchases $75,900 $66,495 Actual direct labor cost $9,889 Actual variable overhead cost 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 direct labor rate variance. e. Compute the variable overhead efficiency and variable rate (spending) variance

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