Upton Company Uses a Standard Cost System for Its Single

Essay

Upton Company uses a standard cost system for its single product. The following data are available:
Actual experience for the current year:
$$\begin{array} { l c } \text { Purchases of raw materials } ( 15,000 \text { yards at } \$ 13 \text { per yard } ) & \$ 195,000 \\\text { Raw materials used } & 12,000 \text { yards } \\\text { Direct labor costs } ( 10,200 \text { hours at } \$ 10 \text { per hour } ) & \$ 102,000 \\\text { Actual variable overhead cost } & \$ 84,150 \\\text { Units produced } & 12,600 \text { units }\end{array}$$
Standards per unit of product:
$$\begin{array} { | l | l | } \hline \text { Raw materials } & 1.1 \text { yards at } \$ 15 \text { per yard } \\\hline \text { Direct labor } & 0.80 \text { hours at } \$ 9.50 \text { per hour } \\\hline \text { Variable overhead } & \$ 8 \text { per direct labor hour } \\\hline\end{array}$$
Required:
Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase:
a. Direct materials price variance.
b. Direct materials quantity variance.
c. Direct labor rate variance.
d. Direct labor efficiency variance.
e. Variable overhead rate variance.
f. Variable overhead efficiency variance.