Spam Inc. had the following standard costs and plans for

Spam Inc. had the following standard costs and plans for fiscal current year for the production of custom meat products

Plan 500,000 Plan

Direct Material .5 lbs meat per unit at $1.20 per lb

Direct Labor 6 hrs at $12 per hour

Overhead $3.50 per unit variable overhead

$600,000 fixed overhead

Actual

490,000 units

235,200.00 lbs $272,832.00

308,700.00 hrs $3,627,225.00

$1,690,500.00 variable overhead

$612,000.00 fixed overhead

Calculate price and efficiency variances for all of the above and briefly explain what they mean and why the variances may have occurred