Kropf Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.
The company has reported the following actual results for the product for September:
Required:a. Compute the materials price variance for September.b. Compute the materials quantity variance for September.c. Compute the labor rate variance for September.d. Compute the labor efficiency variance for September.e. Compute the variable overhead rate variance for September.f. Compute the variable overhead efficiency variance for September.

a.Materials price variance = (Actual quantity × Actual price) − (Actual quantity × Standard price)= ${{[a(9)]:#,###}} − ({{[a(8)]:#,###}} liters × ${{[a(4)]:#,###}} per liter)= ${{[a(9)]:#,###}} − ${{[a(14)]:#,###}}= ${{[a(21)]:#,###}} Unfavorableb.Standard quantity = {{[a(7)]:#,###}} units × {{[a(1)]:#,###.0}} liters per unit = {{[a(15)]:#,###}} litersMaterials quantity variance = (Actual quantity × Standard price) − (Standard quantity × Standard price)= (Actual quantity − Standard quantity) × Standard price= ({{[a(10)]:#,###}} liters − {{[a(15)]:#,###}} liters) × ${{[a(4)]:#,###.00}} per liter= {{[a(16)]:#,###}} liters × ${{[a(4)]:#,###.00}} per liter= ${{[a(22)]:#,###}} Unfavorablec.Labor rate variance = (Actual hours × Actual rate) − (Actual hours × Standard rate)= ${{[a(12)]:#,###}} − ({{[a(11)]:#,###}} hours × ${{[a(5)]:#,###.0}} per hour)= ${{[a(12)]:#,###}} − ${{[a(17)]:#,###}}= ${{[a(23)]:#,###}} Unfavorabled.Standard hours = {{[a(7)]:#,###}} units × {{[a(2)]:#,##0.00}} hours per unit = {{[a(18)]:#,###}} hoursLabor efficiency variance = (Actual hours × Standard rate) − (Standard hours × Standard rate)= (Actual hours − Standard hours) × Standard rate= ({{[a(11)]:#,###}} hours − {{[a(18)]:#,###}} hours) × ${{[a(5)]:#,###.00}} per hour= (−{{[a(19)]:#,###}} hours) × ${{[a(5)]:#,###.00}} per hour= ${{[a(24)]:#,###}} Favorablee.Variable overhead rate variance = (Actual hours × Actual rate) − (Actual hours × Standard rate)= ${{[a(13)]:#,###}} − ({{[a(11)]:#,###}} hours × ${{[a(6)]:#,###}} per hour)= ${{[a(13)]:#,###}} − (${{[a(20)]:#,###}})= ${{[a(25)]:#,###}} Favorablef.Standard hours = {{[a(7)]:#,###}} units × {{[a(2)]:#,##0.00}} hours per unit = {{[a(18)]:#,###}} hoursVariable overhead efficiency variance = (Actual hours × Standard rate) − (Standard hours × Standard rate)= (Actual hours − Standard hours) × Standard rate= ({{[a(11)]:#,###}} hours − {{[a(18)]:#,###}} hours) × ${{[a(6)]:#,###}} per hour= (−{{[a(19)]:#,###}} hours) × ${{[a(6)]:#,###.00}} per hour = ${{[a(26)]:#,###}} Favorable