# Question: Guadelupe Company has set the following standard costs per unit

Guadelupe Company has set the following standard costs per unit for the product it manufactures.
Direct materials (10 lbs. @ \$ 3.00 per lb.) . . . . . . .\$ 30.00
Direct labor (4 hr. @ \$ 6 per hr.) . . . . . . . . . . . . . . 24.00
Overhead (4 hr. @ \$ 2.50 per hr.) . . . . . . . . . . . . . 10.00
Total standard cost . . . . . . . . . . . . . . . . . . . . . . . . . \$ 64.00
The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 10,000 units per month. The following flexible budget information is available.
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During March, the company operated at 90% of capacity and produced 9,000 units, incurring the following actual costs.
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Required
1. Compute the direct materials cost variance, including its price and quantity variances.
2. Compute the direct labor variance, including its rate and efficiency variances.
3. Compute these variances:
(a) Variable overhead spending and efficiency,
(b) Fixed overhead spending and volume,