1) The following standards for variable manufacturing overhead have been established for a company that makes only one product:

Standard hours per unit of output	8.8	hours
Standard variable overhead rate	$15.20	per hour

The following data pertain to operations for the last month:

Actual hours	2,950	hours
Actual total variable manufacturing overhead cost	$45,610
Actual output	150	units

What is the variable overhead efficiency variance for the month?

A) $770 F

B) $25,546 U

C) $20,064 F

D) $24,776 U

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2) Hurren Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	4.5 grams	$5.00 per gram	$22.50
Direct labor	0.8 hours	$10.00 per hour	$8.00
Variable overhead	0.8 hours	$5.00 per hour	$4.00

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

Originally budgeted output	6,700	units
Actual output	6,600	units
Raw materials used in production	28,390	grams
Actual direct labor-hours	4,600	hours
Purchases of raw materials	31,900	grams
Actual price of raw materials purchased	$5.10	per gram
Actual direct labor rate	$10.90	per hour
Actual variable overhead rate	$4.70	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 June is:

A) $2,851 F

B) $2,851 U

C) $3,109 F

D) $3,109 U

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3) Midgley Corporation makes a product whose direct labor standards are 0.9 hours per unit and $30 per hour. In April the company produced 7,450 units using 6,205 direct labor-hours. The actual direct labor cost was $130,305.

The labor efficiency variance for April is:

A) $70,845 F

B) $70,845 U

C) $15,000 F

D) $15,000 U

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4) Blue Corporation's standards call for 2,200 direct labor-hours to produce 1,100 units of product. During May 950 units were produced and the company worked 1,000 direct labor-hours. The standard hours allowed for May production would be:

A) 1,900 Hours

B) 2,200 Hours

C) 1,000 Hours

D) 1,250 Hours