A$.$ Calculate the materials price variance and materials quantity variance using the format shown in Figure $10\mathrm{.}2.$ Clearly label each variance as favorable or unfavorable.

B$.$ Calculate the labor rate variance and labor efficiency variance using the format shown in Figure $10\mathrm{.}3.$ Clearly label each variance as favorable or unfavorable.

C$.$ Calculate the variable overhead spending variance and variable overhead efficiency variance using the format shown in Figure $10\mathrm{.}4.$ Clearly label each variance as favorable or unfavorable.

D$.$ Company policy is to investigate all variances greater than $10$ percent of the flexible budget amount for each of the three variable production costs: direct materials, direct labor, and variable overhead. Identify which of the six variances calculated in requirements a$$through c$$should be investigated.

E$.$ Provide two possible explanations for each variance identified in requirement d$.$