Sakelaris Corporation makes a product with the following standard costs: The company reported the following results concerning this product in August. The company applies variable overhead on the basis of direct labor-hours.The direct materials purchases variance is computed when the materials are purchased.
Required:
a.Compute the materials quantity variance.
b.Compute the materials price variance.
c.Compute the labor efficiency variance.
d.Compute the labor rate variance.
e.Compute the variable overhead efficiency variance.
f.Compute the variable overhead rate variance.

a.SQ = 8,400 units × 8.6 kilos per unit = 72,240 kilos
Materials quantity variance = (AQ - SQ)× SP
= (71,750 kilos − 72,240 kilos)× $6.00 per kilo
= (-490 kilos)× $6.00 per kilo
= $2,940 F
b.Materials price variance = (AQ × AP)− (AQ × SP)
= ($469,090)− (76,900 kilos × $6.00 per kilo)
= $469,090 − $461,400
= $7,690 U
c.SH = 8,400 units × 0.4 hours per unit = 3,360 hours
Labor efficiency variance = (AH - SH)× SR
= (3,320 hours − 3,360 hours)× $11.00 per hour
= (−40 hours)× $11.00 per hour
= $440 F
d.Labor rate variance = (AH × AR)− (AH × SR)
= ($35,524)− (3,320 hours × $11.00 per hour)
= $35,524 − $36,520
= $996 F
e.SH = 8,400 units × 0.4 hours per unit = 3,360 hours
Variable overhead efficiency variance = (AH - SH)× SR
= (3,320 hours − 3,360 hours)× $5.00 per hour
= (−40 hours)× $5.00 per hour
= $200 F
f.Variable overhead rate variance = (AH × AR)− (AH × SR)
= ($17,928)− (3,320 hours × $5.00 per hour)
= $17,928 − $16,600
= $1,328 U