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1. Solly Corporation produces a product for national distribution. Standards for the product are: Materials: 12 ounces per unit at 60 per ounce. Labor: 2

1. Solly Corporation produces a product for national distribution. Standards for the product are:

Materials: 12 ounces per unit at 60 per ounce.

Labor: 2 hours per unit at $8 per hour.

During the month of December, the company produced 1,000 units. Information for the month follows:

Materials: 14,000 ounces purchased and used at a total cost of $7,700.

Labor: 2,500 hours worked at a total cost of $20,625.

The materials quantity variance is:

2. Termeer Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate
Variable manufacturing overhead 0.30 hours $2.30 per hour

The company has reported the following actual results for the product for August:

Actual output 8,000 units
Actual direct labor-hours 2,380 hours
Actual variable overhead rate $ 2.10 per hour
Actual variable overhead cost $ 4,998

The variable overhead efficiency variance for the month is closest to:

3. Ravena Labs., Inc. makes a single product which has the following standards:

Direct materials: 2.5 ounces at $20 per ounce

Direct labor: 1.4 hours at $12.50 per hour

Variable manufacturing overhead: 1.4 hours at 3.50 per hour

Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The following data are available for October:

3,750 units of compound were produced during the month.

There was no beginning direct materials inventory.

Direct materials purchased: 12,000 ounces for $225,000.

The ending direct materials inventory was 2,000 ounces.

Direct labor-hours worked: 5,600 hours at a cost of $67,200.

Variable manufacturing overhead costs incurred amounted to $18,200.

Variable manufacturing overhead applied to products: $18,375.

The materials quantity variance for October is:

4. Miguez Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit
Direct materials 2.3 liters $ 7.00 per liter $ 16.10
Direct labor 0.7 hours $ 22.00 per hour $ 15.40
Variable overhead 0.7 hours $ 2.00 per hour $ 1.40

The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 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 labor rate variance for September is:

5. 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 labor efficiency variance for June is:

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