Compute the price and quantity variances for direct

Question

Calculate price and quantity variances as well as spending and efficiency variances.  Be sure to specify whether variances are favorable or unfavorable.  Keep in mind that price and quantity variances for each category should add up to the total variance for that category.

Given the following information:

Variable overhead costs incurred                                                       $20,570

Material purchased and used                                                              2,900 pounds

Direct labor costs incurred                                                                   $24,500

Direct labor hours incurred                                                                  2,450 hours

Finished units produced                                                                      500 units

Actual material cost                                                                               $37 per pound

Standard direct labor cost                                                                     $9 per hour

Standard material cost                                                                          $40 per pound

Standard variable overhead                                                                $8 per hour

Standard pounds of material in a finished unit                                6 pounds

Standard direct labor hours per finished unit                                   5 hours

Required:

1. Compute the price and quantity variances for direct materials.
2. Compute the price and quantity variances for direct labor.
3. Compute the spending (price) and efficiency (quantity) variances for variable overhead.