1- Ortman Corporation makes a product with the following standard costs:

	Standard Quantity or Hours		Standard Price or Rate
Direct materials	6.3	liters	$8.00	per liter
Direct labor	0.8	hours	$13.00	per hour
Variable overhead	0.8	hours	$1.00	per hour

The company reported the following results concerning this product in May:

Actual output	1,300	units
Raw materials used in production	8,060	liters
Actual direct labor-hours	990	hours
Purchases of raw materials	9,350	liters
Actual price of raw materials purchased	$ 6.50	per liter
Actual direct labor rate	$12.20	per hour
Actual variable overhead rate	$0.50	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 variable overhead rate variance for May is:

a- $498 F

b- $498 U

c- $495 F

d- $495 U

2- Gilder Corporation makes a product with the following standard costs:

	Standard Quantity or Hours		Standard Price or Rate				Standard Cost Per Unit
Direct materials	6.90	grams	$13.00	per gram			$89.70
Direct labor	0.15	hours	$19.00	per hour			$ 2.85
Variable overhead	0.15	hours	$ 6.00	per hour			$ 0.90

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

Originally budgeted output	3,900	units
Actual output	4,140	units
Raw materials used in production	26,368	grams
Purchases of raw materials	29,768	grams
Actual direct labor-hours	550	hours
Actual cost of raw materials purchases	$375,080
Actual direct labor cost	$10,010
Actual variable overhead cost	$2,074

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:

a- $11,904 F

b- $11,904 U

c- $11,674 U

d- $11,674 F

My answer was 11904 U but it was incorrect.