Accounting Assignment | College Homework Help

Blue Co. makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate
Direct materials 7.4 grams $8.00 per gram
Direct labor 0.3 hours $16.00 per hour
Variable overhead 0.3 hours $7.00 per hour

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

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Actual output 2,200 units
Raw materials used in production 16,420 grams
Purchases of raw materials 17,900 grams
Actual direct labor-hours 720 hours
Actual cost of raw materials purchases $141,410
Actual direct labor cost $12,528
Actual variable overhead cost $5,112

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

A) Compute the materials quantity variance.
B) Compute the materials price variance.
C) Compute the labor efficiency variance.

D) Compute the labor rate variance.