Case 1. Standard costs and variance analyses (refer to E10-4, E10-8, P10-9, & P10-11). Rardin Corporation makes a product with the following standard costs: Direct materials..... Direct labor........ Variable overhead... Standard Quantity or Hours Standard Price or Rate $8.00 per ounce $16.00 per hour $7.00 per hour 7.4 ounces 0.3 hours 0.3 hours The company reported the following results concerning this product in July. Actual output... 2,200 units Raw materials used in production 16,420 ounces Purchases of raw materials 17,900 ounces 720 hours Actual direct labor-hours.. Actual cost of raw materials purchases... Actual direct labor cost....... Actual variable overhead cost. $141,410 $12,528 $5,112 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases price variance is computed when the materials are purchased. Required: a. Compute the materials quantity variance. $120 b. Compute the materials price variance. $1642 c. Compute the labor efficiency variance. d. Compute the labor rate variance. e. Compute the variable overhead efficiency variance. f. Compute the variable overhead rate variance.

Case 1. Standard costs and variance analyses (refer to E10-4, E10-8, P10-9, \& P10-11). Rardin Corporation makes a product with the following standard costs: The company reported the following results concerning this product in July. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases price variance is computed when the materials are purchased. Required: a. Compute the materials quantity variance. $1120 b. Compute the materials price variance. \$1642 c. Compute the labor efficiency variance. d. Compute the labor rate variance. e. Compute the variable overhead efficiency variance. f. Compute the variable overhead rate variance