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 ovhd $600,000 fixed ovhd Actual 490,000 units 235,200.00 lbs $272,832.00 308,700.00 hrs $3,627,225.00 $1,690,500.00 variable ovhd $612,000.00 fixed ovhd Calculate price and efficiency variances for all of the above and briefly explain what they mean and why the variances may have occurred
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