1. Majer Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		6.4	ounces	$	3.00	per ounce	$	19.20
Direct labor		0.4	hours	$	13.00	per hour	$	5.20
Variable overhead		0.4	hours	$	5.00	per hour	$	2.00

The company reported the following results concerning this product in February.

Originally budgeted output		4,800	units
Actual output		4,900	units
Raw materials used in production		30,230	ounces
Actual direct labor-hours		1,910	hours
Purchases of raw materials		32,600	ounces
Actual price of raw materials	$	2.90	per ounce
Actual direct labor rate	$	12.40	per hour
Actual variable overhead rate	$	4.90	per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The materials price variance for February is:

2. Tharaldson Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		6.5	ounces	$	2.00	per ounce	$	13.00
Direct labor		0.2	hours	$	23.00	per hour	$	4.60
Variable overhead		0.2	hours	$	6.00	per hour	$	1.20

The company reported the following results concerning this product in June.

Originally budgeted output		2,700	units
Actual output		2,800	units
Raw materials used in production		19,380	ounces
Purchases of raw materials		21,400	ounces
Actual direct labor-hours		500	hours
Actual cost of raw materials purchases	$	40,660
Actual direct labor cost	$	12,050
Actual variable overhead cost	$	3,100

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The materials price variance for June is:

Multiple Choice

• $2,140 U

• $2,140 F

• $1,820 U

• 1820F

3.

Handerson Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate
Direct materials		8.5	kilos	$	6.00	per kilo
Direct labor		0.4	hours	$	20.00	per hour
Variable overhead		0.4	hours	$	6.00	per hour

The company reported the following results concerning this product in August.

Actual output		3,200	units
Raw materials used in production		29,030	kilos
Purchases of raw materials		31,600	kilos
Actual direct labor-hours		1,160	hours
Actual cost of raw materials purchases	$	195,920
Actual direct labor cost	$	22,736
Actual variable overhead cost	$	7,540

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The labor efficiency variance for August is:

Multiple Choice

• $2,400 U

• $2,400 F

• $2,352 F

• $2,352 U

4.

Handerson Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate
Direct materials		8.5	kilos	$	6.00	per kilo
Direct labor		0.4	hours	$	20.00	per hour
Variable overhead		0.4	hours	$	6.00	per hour

The company reported the following results concerning this product in August.

Actual output		3,200	units
Raw materials used in production		29,030	kilos
Purchases of raw materials		31,600	kilos
Actual direct labor-hours		1,160	hours
Actual cost of raw materials purchases	$	195,920
Actual direct labor cost	$	22,736
Actual variable overhead cost	$	7,540

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for August is:

Multiple Choice

• $720 U

• $720 F

• $780 U

• 780F