Given the Following Information Required:
Compute the Price and Usage Variances for Direct Material

Essay

Given the following information: $$\begin{array} { l l } \text { Variable-overhead costs incurred } & \$ 20,570 \\\text { Material purchased and used } & 2,900 \text { pounds } \\\text { Direct labor costs incurred } & 2,450 \text { hours; } \$ 24,500 \\\text { Finished units produced } & 500 \text { units } \\\text { Actual material cost } & \$ 37 \text { per pound } \\\text { Standard direct labor cost } & \$ 9 \text { per hour } \\\text { Standard material cost } & \$ 40 \text { per pound } \\\text { Standard variable overhead } & \$ 8 \text { per hour } \\\text { Standard pounds of material in a financial } & \\\text { unit } & 6 \\\text { Standard direct labor hours per finished unit } & 5\end{array}$$ Required:
Compute the price and usage variances for direct material, labor, and the spending and efficiency variances for variable overhead. Indicate whether each variance is favorable or unfavorable.