1. The KC Company has established standards as follows:

Direct Material	3kgs @ $9/kg = $27 per unit
Direct Labour	2hr. @ $14.25/hour = $28.50 per unit
Variable Manufacturing Overhead	2hr @ $1.75/hour = $3.5 per unit

Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased.

Units Produced	1,450
Direct Material Used	5,000 kg
Direct Materials Purchased (5000kg)	$37,500
Direct Labour Cost (2500 hrs)	$36,250
Variable Manufacturing Overhead Cost Incurred	$4,950

The company applies variable manufacturing overhead to products on the basis of direct labour hours.

What was the materials price variance?

A. $97,500 Favourable

B. $7,500 Unfavourable

C. $7,500 Favourable

D. $97,500 Unfavourable

2. The KC Company has established standards as follows:

Direct Material	3kgs @ $9/kg = $27 per unit
Direct Labour	2hr. @ $14.25/hour = $28.50 per unit
Variable Manufacturing Overhead	2hr @ $1.75/hour = $3.5 per unit

Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased.

Units Produced	1,450
Direct Material Used	5,000 kg
Direct Materials Purchased (5000kg)	$37,500
Direct Labour Cost (2500 hrs)	$36,250
Variable Manufacturing Overhead Cost Incurred	$4,950

The company applies variable manufacturing overhead to products on the basis of direct labour hours.

What was the materials quantity variance?

A. $6,050 Unfavourable

B. $5,850 Favourable

C. $5,850 Unfavourable

D. $6,050 Favourable

3. The KC Company has established standards as follows:

Direct Material	3kgs @ $9/kg = $27 per unit
Direct Labour	2hr. @ $14.25/hour = $28.50 per unit
Variable Manufacturing Overhead	2hr @ $1.75/hour = $3.5 per unit

Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased.

Units Produced	1,450
Direct Material Used	5,000 kg
Direct Materials Purchased (5000kg)	$37,500
Direct Labour Cost (2500 hrs)	$36,250
Variable Manufacturing Overhead Cost Incurred	$4,950

The company applies variable manufacturing overhead to products on the basis of direct labour hours.

What was the labour rate variance?

A. $625 Unfavourable

B. $3,500 Favourable

C. $625 Favourable

D. $3,500 Unfavourable

4.The KC Company has established standards as follows:

Direct Material	3kgs @ $9/kg = $27 per unit
Direct Labour	2hr. @ $14.25/hour = $28.50 per unit
Variable Manufacturing Overhead	2hr @ $1.75/hour = $3.5 per unit

Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased.

Units Produced	1,450
Direct Material Used	5,000 kg
Direct Materials Purchased (5000kg)	$37,500
Direct Labour Cost (2500 hrs)	$36,250
Variable Manufacturing Overhead Cost Incurred	$4,950

The company applies variable manufacturing overhead to products on the basis of direct labour hours.

What was the labour efficiency variance?

A. $400 Unfavourable

B. $400 Favourable

C. $5,700 Favourable

D. $5,700 Unfavourable