| 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 _____________________________________________________________________________ | 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 _____________________________________________________________________________________ | 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 __________________________________________________________________________________ | 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 | | | |
