Trueform Products Inc., a U.S. company, produces a broad line of sports equipment and uses a standard costing system for control purposes. Last year, the company produced 9,200 varsity footballs. The standard costs associated with this football, along with the actual costs incurred last year, follow (per football):

Standard
Cost

Actual
Cost

  Direct materials:

     Standard: 3.70 feet at $11.00 per foot

$

40.70

     Actual: 4.00 feet at $10.80 per foot

$

43.20

  Direct labour:

     Standard: 0.90 hour at $13.50 per hour

12.15

     Actual: 0.80 hour at $14.00 per hour

11.20

  Variable manufacturing overhead:

     Standard: 0.90 hour at $8.50 per hour

7.65

     Actual: 0.80 hour at $8.75 per hour

7.00

  Total cost per football

$

60.50

$

61.40

The president was elated when he saw that actual costs exceeded standard costs by only $0.90 per football. He stated, “I was afraid that our unit cost might get out of hand when we gave out those raises last year in order to stimulate output. But it’s obvious our costs are well under control.”

     There was no inventory of materials on hand to start the year. During the year, 36,800 feet of materials were purchased and used in production.

Required:

1.

For direct materials:

a.

Compute the price and quantity variances for the year. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).

Material price Variance:

Material quantity variance:

3.

Compute the variable overhead spending and efficiency variances.(Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).