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Corporation makes a product with the following standard costs:

	Standard Quantity or Hours		Standard Price or Rate
Direct materials	7.8	kilos	$5.00	per kilo
Direct labor	0.6	hours	$12.00	per hour
Variable overhead	0.6	hours	$6.00	per hour

The company reported the following results concerning this product in August.

Actual output	8,100	units
Raw materials used in production	62,750	kilos
Purchases of raw materials	56,900	kilos
Actual direct labor-hours	4,450	hours
Actual cost of raw materials purchases	$293,035
Actual direct labor cost	$55,520
Actual variable overhead cost	$27,930

The company applies variable overhead on the basis of direct labor-hours.

A) Compute the actual price per kilo of direct materials purchased in August.

B) Compute the materials price variance (A favorable variance should be a positive number. An unfavorable variance should be a negative number).

C) Compute the materials quantity variance (A favorable variance should be a positive number. An unfavorable variance should be a negative number).

D) Compute the labor rate variance (A favorable variance should be a positive number. An unfavorable variance should be a negative number).

E) Compute the labor efficiency variance (A favorable variance should be a positive number. An unfavorable variance should be a negative number).

F) Compute the variable overhead rate variance (A favorable variance should be a positive number. An unfavorable variance should be a negative number).

G) Compute the variable overhead efficiency variance (A favorable variance should be a positive number. An unfavorable variance should be a negative number).

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