Lido Company's standard and actual costs per unit for the most recent period, during which 500 units were actually produced, are given below:
All of the materials purchased during the period were used in production during the period.
Required:From the foregoing information, compute the following variances. Indicate whether the variance is favorable (F) or unfavorable (U):a. Material price variance.b. Material quantity variance.c. Labor rate variance.d. Labor efficiency variance.e. Variable overhead rate variance.f. Variable overhead efficiency variance.

a. Actual quantity of materials used = 1.9 feet per unit × 500 units = 950 feetMaterials price variance = Actual quantity × (Actual price − Standard price)= 950 feet × ($1.60 per foot − $1.50 per foot)= 950 feet × ($0.10 per foot)= $95 Unfavorable
b. Materials quantity variance = (Actual quantity − Standard quantity) × Standard price= [950 feet − (2 feet per unit × 500 units)] × $1.50 per foot= [950 feet − 1,000 feet] × $1.50 per foot= −50 feet × $1.50 per foot= $75 Favorable
c. Actual direct labor-hours = 1.7 hours per unit × 500 units = 850 hoursLabor rate variance = Actual hours × (Actual rate − Standard rate)= 850 hours × ($6.30 per hour − $6.00 per hour)= 850 hours × ($0.30 per hour)= $255 Unfavorable
d. Labor efficiency variance = (Actual hours − Standard hours) × Standard rate= [850 hours − (1.5 hours per unit × 500 units)] × $6.00 per hour= [850 hours − 750 hours] × $6.00 per hour= [50 hours] × $6.00 per hour= $600 Unfavorable
e. Variable overhead rate variance = Actual hours × (Actual rate − Standard rate)= 850 hours × ($3.00 per hour − $3.40 per hour)= 850 hours × (−$0.40 per hour)= $340 Favorable
f. Variable overhead efficiency variance = (Actual hours − Standard hours) × Standard rate= (850 hours − 750 hours) × $3.40 per hour= (100 hours) × $3.40 per hour= $340 Unfavorable