1a. Epley Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate
Direct materials	2.0 pounds	$7.00 per pound
Direct labor	1.4 hours	$16.00 per hour
Variable overhead	1.4 hours	$4.00 per hour

In July the company produced 4,400 units using 10,200 pounds of the direct material and 2,180 direct labor-hours. During the month, the company purchased 10,770 pounds of the direct material at a cost of $76,650. The actual direct labor cost was $38,248 and the actual variable overhead cost was $11,949.

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 July is:

rev: 11_06_2015_QC_CS-32670

$1,120 U

$1,260 F

$9,800 U

$1,120 F

1b. Pardoe, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product:

	Standard Quantity	Standard Price or Rate	Standard Cost
Direct materials	2.5 pounds	$5.00 per pound	$12.50
Direct labor	0.6 hours	$14 per hour	$8.4
Variable manufacturing overhead	0.6 hours	$3.25 per hour	$1.95

During March, the following activity was recorded by the company:

The company produced 4,600 units during the month.

A total of 15,000 pounds of material were purchased at a cost of $42,000.

There was no beginning inventory of materials on hand to start the month; at the end of the month,

3,000 pounds of material remained in the warehouse.

During March, 2,960 direct labor-hours were worked at a rate of $14.50 per hour.

Variable manufacturing overhead costs during March totaled $5,972.

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

The materials price variance for March is:

$33,000 U

$23,500 F

$23,500 U

$33,000 F

1c. Oddo Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	4.0 ounces	$7.30 per ounce	$29.20
Direct labor	0.8 hours	$22.00 per hour	$17.60
Variable overhead	0.8 hours	$5.00 per hour	$4.00

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

Originally budgeted output	4,430	units
Actual output	4,230	units
Raw materials used in production	17,120	ounces
Actual direct labor-hours	3,584	hours
Purchases of raw materials	18,830	ounces
Actual price of raw materials	$7.10	per ounce
Actual direct labor rate	$18.60	per hour
Actual variable overhead rate	$5.20	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 efficiency variance for December is:

rev: 11_18_2015_QC_CS-32747, 02_18_2016_QC_CS-42551

$1,040 U

$1,000 F

$1,000 U

$1,040 F