managerial accounting question 403333

3. (30 points)Thompson Company uses a standard cost system for its single product. The following data are available:

Actual experience for the current year:

Purchases of raw materials (30,000 yards at $2.50 per yard) $75,000

Raw materials used 20,000 yards

Direct labor costs (10,000 hours at $8.60 per hour $86,000

Actual variable overhead cost $35,9000

Units produced 4,800 units

Standards per unit of product:

Raw materials 4 yards at $2.6 per yard

Direct labor 2 hours at $9.00 per hour

Variable overhead $21.6 per direct labor hour

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:

1. Direct materials price variance.
2. Direct materials quantity variance.
3. Direct labor rate variance.
4. Direct labor efficiency variance.
5. Variable overhead rate variance.
6. Variable overhead efficiency variance.