1. Rowing Company has developed the following standards for one of its products:

Direct materials: 6 pounds ? $8 per pound

Direct labor: 2 hours ? $11 per hour

Variable manufacturing overhead: 3 hours ? $7 per hour

The following activity occurred during the month of March:

Materials purchased: 5,000 pounds costing $42,500

Materials used: 3,600 pounds

Units produced: 500 units

Direct labor: 1,150 hours at $11.80/hour

Actual variable manufacturing overhead: $7,500

The company records materials price variances at the time of purchase.

The variable standard cost per unit is

a. $81.00

b. $91.00

c. $98.50

d. $42.50

Figure 9-1

Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows:

Materials: Standard Actual

Standard: 220 pounds at $3.00 per pound $660

Actual: 230 pounds at $2.80 per pound $644

Direct labor:

Standard: 400 hours at $15.00 per hour 6,000

Actual: 378 hours at $16.50 per hour 6,237

2. Refer to Figure 9-1. What is the material usage variance for Bender Corporation?

a. $90 (F)

b. $90 (U)

c. $30 (F)

d. $30 (U)

3. Refer to Figure 9-1. What is the material price variance for Bender Corporation?

a. $46 (U)

b. $46 (F)

c. $36 (U)

d. $36 (F)

Figure 9-2

Bodacious Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows:

Materials: Standard Actual

Standard: 200 pounds at $3.00 per pound $600

Actual: 220 pounds at $2.85 per pound $627

Direct labor:

Standard: 400 hours at $15.00 per hour 6,000

Actual: 378 hours at $16.50 per hour 6,237

4. Refer to 9-2. What is the labor efficiency variance for Bodacious Corporation?

a. $480 (U)

b. $480 (F)

c. $330 (U)

d. $330 (F)

5. Montana Company uses a standard costing system. The following information pertains to direct labor costs for the month of February:

Standard direct labor rate per hour $15.00

Actual direct labor rate per hour $13.50

Labor rate variance $16,500 favorable

Actual output 1,000 units

Standard hours allowed for actual production 10,000 hours

How many actual labor hours were worked during February for Montana Company?

a. 10,000

b. 12,000

c. 11,000

d. 9,000

6. 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 $8.50 per hour

Actual variable manufacturing overhead: $51,000

The company records materials price variances at the time of purchase.

The direct labor rate variance is

a. $12,000 favorable.

b. $8,000 favorable.

c. $12,000 unfavorable.

d. $8,000 unfavorable.