1. TaskMaster Enterprises employs a standard cost system in which direct materials inventory is carried at standard cost. TaskMaster has established the following standards for the prime costs of one unit of product.

	Standard					Standard			Standard
	Quantity					Price			Cost
Direct Materials		8	pounds			$	1.80	per pound		$	14.40
Direct Labor		.25	hour			$	8.00	per hour			2.00
										$	16.40

During November, TaskMaster purchased 160,000 pounds of direct materials at a total cost of $304,000. The total factory wages for November were $42,000, 90% of which were for direct labor. TaskMaster manufactured 19,000 units of product during November using 142,500 pounds of direct materials and 5,000 direct labor hours.

Is the direct labor price (rate) variance favorable or unfavorable?

a.) Favorable.

b.) Unfavorable.

2. Data on Gantry Company's direct-labor costs are given below:

Standard direct-labor hours		30,000
Actual direct-labor hours		29,000
Direct-labor efficiency variance-favorable	$	4,000
Direct-labor rate variance-favorable	$	5,800
Total direct labor payroll	$	110,200

What was Gantry's standard direct-labor rate?

a.) $3.54.

b.) $3.80.

c.) $4.00.

d.) $5.80.

3. The Fellowes Company has developed standards for labor. During June, 75 units were scheduled and 100 were produced. Data related to labor are:

Standard hours allowed		3	hours per unit
Standard wages allowed	$	4.00	per hour
Actual direct labor		310	hours (total cost $1,209)

What is the labor rate variance for June?

a.) $30 unfavorable.

b.) $31 favorable.

c.) $31 unfavorable.

d.) $30 favorable.

4.

Actual machine hours		840
Standard machine hours allowed		900
Denominator activity (machine hours)		1,000
Actual fixed overhead costs	$	3,800
Budgeted fixed overhead costs	$	4,000
Predetermined overhead rate ($1 variable + $4 fixed)	$	5

What is the fixed overhead spending (budget) variance?

a.) $200.

b.) $400.

c.) $300.

d.) $240.