Solved: Silmon Corporation makes a product with the following standard costs In

In June the company produced 4,900 units using 21,810 grams of the direct material and 2,530 direct labor-hours. During the month the company purchased 24,800 grams of the direct material at a price of $8.80 per gram. The actual direct labor rate was $16.60 per hour and the actual variable overhead rate was $1.90 per hour. The materials price variance is computed when materials are purchased. Variable overhead is applied on the basis of direct labor-hours.

In June the company produced 4,900 units using 21,810 grams of the direct material and 2,530 direct labor-hours. During the month the company purchased 24,800 grams of the direct material at a price of $8.80 per gram. The actual direct labor rate was $16.60 per hour and the actual variable overhead rate was $1.90 per hour. The materials price variance is computed when materials are purchased. Variable overhead is applied on the basis of direct labor-hours.

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:

Direct materials quantity variance $

Direct materials price variance $

Direct labor efficiency variance $

Direct labor rate variance$

Variable overhead efficiency variance $

Variable overhead rate variance $