Reference no: EM132599154

Question - Thompson Company uses a standard cost system for its single product. The following data are available:

Actual experience for the current year:

Raw materials purchased and used (12,000 yards at $13.00 per yard) $156,000

Direct labor costs (10,200 hours at $10.00 per hour) $102,000

Actual variable overhead cost $84,150

Units produced 12,600 units

Standards per unit of product:

Raw Materials 1.1 yarts at $15.00 per yard

Direct Labor 0.8 hours at $9.50 per hour

Variable Overhead $8 per direct labor hour

Required - Show Your Work

Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of usage:

a. Direct materials price variance and Direct materials quantity variance.

b. Direct labor rate variance and Direct labor efficiency variance.

c. Variable overhead rate variance and Variable overhead efficiency variance.