#10

Bulluck Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate
Direct materials		3.5	grams	$	1.00	per gram
Direct labor		0.7	hours	$	11.00	per hour
Variable overhead		0.7	hours	$	2.00	per hour

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

Actual output		3,000	units
Raw materials used in production		11,370	grams
Actual direct labor-hours		1,910	hours
Purchases of raw materials		12,100	grams
Actual price of raw materials purchased	$	1.20	per gram
Actual direct labor rate	$	11.40	per hour
Actual variable overhead rate	$	2.10	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 variable overhead rate variance for July is:

Multiple Choice

$210 U

$191 U

$210 F

$191 F

#11

Handerson Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate
Direct materials		8.5	kilos	$	6.00	per kilo
Direct labor		0.4	hours	$	20.00	per hour
Variable overhead		0.4	hours	$	6.00	per hour

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

Actual output		3,200	units
Raw materials used in production		29,030	kilos
Purchases of raw materials		31,600	kilos
Actual direct labor-hours		1,160	hours
Actual cost of raw materials purchases	$	195,920
Actual direct labor cost	$	22,736
Actual variable overhead cost	$	7,540

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 quantity variance for August is:

Garrison 16e Rechecks 2017-07-22

Multiple Choice

$10,980 F

$11,346 F

$10,980 U

$11,346 U