1. Colina Production Company uses a standard costing system. The following information pertains to the current year. Direct labor hours is the driver used to assign overhead costs to products.

Actual production	5,500 units
Actual factory overhead costs ($16,500 is fixed)	$40,125
Actual direct labor costs (11,250 hours)	$131,625
Standard direct labor for 5,500 units:
Standard hours allowed	11,000 hours
Labor rate	$12.00

The factory overhead rate is based on an activity level of 10,000 direct labor hours. Standard cost data for 5,000 units is as follows:

Variable factory overhead	$22,500
Fixed factory overhead	13,500
Total factory overhead	$36,000

What is the variable overhead efficiency variance for Colina Production Company?

a.$562.50 (U)

b.$1,687.50 (F)

c.$562.50 (F)

d.$3,000.00 (U)

2. Harrangue Company's standard variable overhead rate is $6 per direct labor hour, and each unit requires 2 standard direct labor hours. During March, Harry recorded 6,000 actual direct labor hours, $37,000 actual variable overhead costs, and 2,900 units of product manufactured. What is the variable overhead efficiency variance for March for Harrangue?

a.$2,200 (U)

b.$1,200 (U)

c.$600 (U)

d.$2,200 (F)

3. Synergy Manufacturing Company has a normal monthly activity of 7,500 units. Standard factory overhead rates are based on a normal monthly volume of one standard direct hour per unit. Standard factory overhead rates per direct labor hour are:

Fixed	$ 5.00
Variable	12.00		$17.00
Units actually produced in current month			7,000 units
Actual factory overhead costs incurred (includes $50,000 fixed)			$140,000

What is the variable overhead spending variance for Synergy?

a.$6,000 unfavorable

b.$21,000 unfavorable

c.$0

d.$6,000 favorable

4. Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July:

Standard price per lb.	$18.00
Actual purchase price per lb.	$16.50
Quantity purchased	3,100 lbs.
Quantity used	2,950 lbs.
Standard quantity allowed for actual output	3,000 lbs.
Actual output	1,000 units

Malkovich Company reports its material price variances at the time of purchase. What is the material usage variance for Malkovich Company?

a.$900 (F)

b.$1,950 (F)

c.$900 (U)

d.$2,850 (F)

5.

Biscuit Company has developed the following standards for one of its products. Direct labor hours is the driver used to assign overhead costs to products.

Direct materials:	10 pounds $3 per pound
Direct labor:	2.5 hours $8 per hour
Variable manufacturing overhead:	2.5 hours $2 per hour
The following activity occurred during the month of June:
Materials purchased:	125,000 pounds at $2.60 per pound
Materials used:	110,000 pounds
Units produced:	10,000 units
Direct labor:	24,000 hours at $7.50 per hour
Actual variable manufacturing overhead:	$51,000

The company records materials price variances at the time of purchase. The direct labor efficiency variance is

a.$20,000 favorable.

b.$20,000 unfavorable.

c.$8,000 unfavorable.

d.$8,000 favorable.