Applied Acquisition Costs. Benjamin Company Inc. records incoming materials at invoice price less cash dis¬ counts plus applied receiving and handling cost. For product Gamma, the following data are available: LO2 Budgeted for Actual Cost the Month for the Month Freight-in and cartage-in.

$ 2,500

$ 2,580 Purchasing Department cost.

4,800 4,500 Receiving Department cost.

3,900 4,200 Storage and handling.

4,200 3,800 Testing, spoilage, and rejects.

2,600 3,120 Total.

$18,000

$18,200 The purchasing budget shows estimated net purchases of $144,000 for the month. Actual invoices net of discounts total $148,500 for the month.

Required:

(1) Determine the applied acquisition costing rate for the month.

(2) Determine the amount of applied cost added to materials purchased during the month.

(3) Indicate the possible disposition of the variance.