=E=E uring the month, thus causing the actual labor rate to be less than standard. Required-Part C: 10. Determine and interpret the direct materials price and quantity variances for the three materials. 11. Determine and interpret the direct labor rate and time variances for the two departments. 12. Determine and interpret the factory overhead controllable variance. 13. Determine and interpret the factory overhead volume variance. 14. Why are the standard direct labor and direct materials costs in the calculations for parts (10) and (11) based on the actual 1,500-case production volume rather than the planned 1,375 cases of production used in the budgets for parts (6) and (7)? 10. Determine and interpret the direct materials price and quantity variances for the three materials. 11. Determine and interpret the direct labor rate and time variances for the two departments. The change in the caused the labor rate variances. This change have been responsible for the direct labor time variance. 12. Determine and interpret the factory overhead controllable variance. The factory overhead controllable variance was caused by the variance in 13. Determine and interpret the factory overhead volume variance. Additional instructions The volume variance indicates the cost of underused capacity The production volume of cases was planned at the beginning of August. The variances compare the actual cost and the standard cost of _actual production for the month. Thus, the standard cost must be based on the units of actual production