1. Madrid Co. has a direct labor standard of 4 hours per unit of output. Each employee has a standard wage rate of $11.80 per hour. During February, Madrid Co. paid $99,800 to employees for 9,220 hours worked. 2,460 units were produced during February. What is the direct labor rate variance? (Do not round your intermediate calculations.)

A $16,312 favorable

B $7,316 favorable

C $8,148 favorable

D $8,996 favorable

2. Robin Company has the following balances for the current month:

Direct materials used	$	20,000
Direct labor	$	17,900
Sales salaries	$	12,750
Indirect labor	$	2,000
Production manager's salary	$	5,700
Marketing costs	$	7,900
Factory lease	$	3,900

What is Robin's total manufacturing cost?

A $70,150

B $49,500

C $37,900

D $25,700

3. Oxford Co. has a material standard of 2.1 pounds per unit of output. Each pound has a standard price of $12 per pound. During February, Oxford Co. paid $57,600 for 4,910 pounds, which were used to produce 2,480 units. What is the direct materials price variance? (Do not round your intermediate calculations.)

A$1,320 unfavorable

B $1,880 favorable

C $1,320 favorable

D $1,880 unfavorable

4. Knox Corp has a selling price of $14, variable costs of $11.34 per unit, and fixed costs of $25,500. If Knox sells 9,500 units, the contribution margin ratio will equal:

A 11.12%

B 7.88%

C 252.70%

D 19.00%

5. Jupiter Co. applies overhead based on direct labor hours. The variable overhead standard is 4 hours at $12 per hour. During February, Jupiter Co. spent $113,400 for variable overhead. 9,150 labor hours were used to produce 2,400 units. What is the variable overhead rate variance?

A$3,600 favorable

B $5,400 favorable

C $1,800 favorable

D$3,600 unfavorable

6. Jillian Inc. produces leather handbags. The production budget for the next four months is: July 5,200 units, August 7,600, September 7,500, October 8,300. Each handbag requires 1.9 hours of unskilled labor (paid $15 per hour) and 3.2 hours of skilled labor (paid $23 per hour). How many total labor hours will be budgeted for September?

A 24,000

B 38,250

C 7,500

D14,250