ABC labs, Inc. produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows:

Standard Qty     Standard Price or Rate        Standard Cost
Direct materials                      2.5 ounces                      $20.00 per ounce             $50.00
Direct labor                             1.4 hours                        $12.50 per hour               $17.50
Variable manufacturing overhead   1.4 hours                  $3.50 per hour              $ 4.90
& nbsp;                                                                            $72.40

During November the following activity was recorded by the company relative to production of Fludes:

a.     Materials purchased, 12000 ounces at a cost of $225,000.
b.     There was no beginning inventory of materials, however, at the end of the month, 2,500 ounces of material remained in ending inventoy.
c.     The company employs 35 lab technicians to work on the production of Fludex. During November, each worked an average of 160 hours at an average rate of $12.00 per hour.
d.     Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $18,200.
e.     During November, 3,750 good units of Fludex were produced.

The company’s management is anxious to determine the efficiency of the Fluxed production activities.

Required:
1.     For direct materials used in the production of Fludex: compute the price and quantity variances.
2.     For direct labor employed in the production of Fludex: compute the rate and efficiency variances.
3.     Compute the variable overhead spending and efficiency variances