1. The following standards have been established for a raw material used to make product O84:

Standard quantity of the material per unit of output 8.7 meters Standard price of the material $ 18.00 per meter

The following data pertain to a recent month's operations:

Actual material purchased 5,500 meters Actual cost of material purchased $ 103,500 Actual material used in production 4,900 meters Actual output 660 units of product O84

The direct materials purchases variance is computed when the materials are purchased.

Required:

a. What is the materials price variance for the month?

b. What is the materials quantity variance for the month?

(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

2.

The following data for November have been provided by Hunn Corporation, a producer of precision drills for oil exploration:

Budgeted production 4,700 drills Standard machine-hours per drill 10.0 machine-hours Standard indirect labor $ 9.80 per machine-hour Standard power $ 3.40 per machine-hour Actual production 4,900 drills Actual machine-hours 36,350 machine-hours Actual indirect labor $ 359,888 Actual power $ 121,230

Required:

Compute the variable overhead rate variances for indirect labor and for power for November. Indicate whether each of the variances is favorable (F) or unfavorable (U).

(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

a. Materials price variance b. Materials quantity variance Variable Overhead Rate Variance Indirect labor Power