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Question - Zee Corp uses a standard cost system for its single product. The following data are available: ACTUAL for the current year: Purchase of raw materials (8,000 at $13.50) $108,000 Raw materials used 8,300 yards Direct Labor costs (19,200 at $25.00) $480,000 Actual variable overhead cost $163,710 Units produced 8100 units Standards per unit of product: Raw materials 1.10 yards at $13.20/yard Direct labor 2.4 hours at $25.10/hr Variable overhead $8.50 per direct labor hour.
Compute the following variances:
1. material variance (price and quantity).
2. labor variance (rate and efficiency).
3. variable overhead variance (spending and efficiency).
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