The Data Below Relate to a Product of Bellingham Company

Essay

The data below relate to a product of Bellingham Company.
$\begin{array}{lrr}\text { Standard costs: }\\ \text {Materials, 2 pounds at \( \$ 6 \) per pound } &\text { \( \$ 12 \) per unit } \\ \text { Labor, 3 hours at \( \$ 15 \) per hour } &\text { \( \$ 45 \) per unit} \\\\\text { Actual results were: } \\\text { Production } & 3,600 \text { unit } \\\text { Material purchased \& used, } 7,300 \text { pounds } & \$ 42,340 \\\text { Labor, } 10,360 \text { hours } & \$ 160,580 \end{array}$

Required:
(Be sure to indicate whether the variances are favorable or unfavorable and show your work.)
a. Compute the direct material price variance.
b. Compute the direct material usage variance.
c. Compute the direct labor rate variance.
d. Compute the direct labor efficiency variance.