Mirabito 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 December:
Required:
a. Compute the materials price variance for December.
b. Compute the materials quantity variance for December.
c. Compute the labor rate variance for December.
d. Compute the labor efficiency variance for December.
e. Compute the variable overhead rate variance for December.
f. Compute the variable overhead efficiency variance for December.

a. Materials price variance = (Actual quantity × Actual price) − (Actual quantity × Standard price)
= Actual quantity × (Actual price − Standard price)
= 31,700 grams × ($9.00 per gram − $9.70 per gram)
= 31,700 grams × (−$0.70 per gram)
= $22,190 Favorable
b. Standard quantity = 6,000 units × 5.0 grams per unit = 30,000 grams
Materials quantity variance = (Actual quantity × Standard price) − (Standard quantity × Standard price)
= (Actual quantity − Standard quantity) × Standard price
= (29,990 grams − 30,000 grams) × $9.70 per gram
= −10 grams × $9.70 per gram
= $97 Favorable
c. Labor rate variance = (Actual hours × Actual rate) − (Actual hours × Standard rate)
= Actual hours × (Actual rate − Standard rate)
= 1,760 hours × ($21.90 per hour − $21.20 per hour)
= 1,760 hours × ($0.70 per hour)
= $1,232 Unfavorable
d. Standard hours = 6,000 units × 0.30 hours per unit = 1,800 hours
Labor efficiency variance = (Actual hours × Standard rate) − (Standard hours × Standard rate)
= (Actual hours − Standard hours) × Standard rate
= (1,760 hours − 1,800 hours) × $21.20 per hour
= (−40 hours) × $21.20 per hour
= $848 Favorable
e. Variable overhead rate variance = (Actual hours × Actual rate) − (Actual hours × Standard rate)
= Actual hours × (Actual rate − Standard rate)
= 1,760 hours × ($8.80 per hour − $9.20 per hour)
= 1,760 hours × (−$0.40 per hour)
= $704 Favorable
f. Standard hours = 6,000 units × 0.30 hours per unit = 1,800 hours
Variable overhead efficiency variance = (Actual hours × Standard rate) − (Standard hours × Standard rate)
= (Actual hours − Standard hours) × Standard rate
= (1,760 hours − 1,800 hours) × $9.20 per hour
= (−40 hours) × $9.20 per hour
= $368 Favorable