1.

Tugwell Inc. budgeted

10,700

pounds of direct materials costing

$19.50

per pound to make

5,400

units of product. The company actually purchased

10,900

pounds of direct materials costing

$25.50

per pound to make the

5,400

units. What is the direct materials price variance?

A.

$65,400

unfavorable

B.

$64,200

unfavorable

C.

$65,400

favorable

D.

$64,200

favorable

2.

Sweet Notes manufactures musical instrument for sale to students and professionals. The information for one of the company's most popular products, professional saxophones, follows:

Product	Saxophone
Standard direct labor hours per saxophone	1.25
Standard direct labor rate per hour	$22
Actual number of saxophones manufactured	660
Actual direct labor hours worked	1,100
Actual total direct labor cost	$19,030

What is the labor rate variance for saxophones?

A.

$5,170

unfavorable

B.

$3,102

unfavorable

C.

$5,170

favorable

D.

$3,102

favorable