Fastic Corporation Makes a Product with the Following Standard Costs

Essay

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