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 (11,000 yards at $11.00 per yard) $ 121,000
Raw materials used 18,000 yards
Direct labor costs (10,200 hours at $8.00 per hour) $ 81,600
Actual variable overhead cost $ 84,030
Units produced 12,600 units
Standards per unit of product:
Raw materials 1.7 yards at $13.00 per yard
Direct labor .8 hours at $7.50 per hour
Variable overhead $7.00 per direct labor hour
Required:
Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase: (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)
a. Direct materials price variance $ ___
b. Direct materials quantity variance $ ____
c. Direct labor rate variance $ ____
d. Direct labor efficiency variance $ ____
e. Variable overhead rate variance $ ____
f. Variable overhead efficiency variance $ _____