16&17

QUESTION 16 Classic Tees, Inc. manufactures tshirts with the following standard costs 3 points Standard Standard Quantity/Hours Direct materials (fabric) 0.5 m Direct labor 0.6 Variable overhead Price/Rate $8.00 / m $18.00/hr $4.00/hr 0.6 Classic Tees produced 3,000 shirts in May using 1,525 meters of direct material and 1.775 direct labor hours. During the month the company purchased 1.600 meters of the direct material at 58.25 per meter. The actual direct labor rate was $18.25 per hour and the actual variable overhead rate was $3.90 per hour. Calculate the material price variance for direct materials O a. 5400F Ob. $400 U Oc. $381.25F d. 5381.25 U QUESTION 17 Glue, staples, and other small supplies used in small quantities for each unit of a product would most likely be categorized as a. direct labor b. direct materials, c. administrative costs. d. manufacturing overhead