2 HW Questions:

1)

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	$8.00 per pound	$20.00
Direct labor	0.6 hours	$26 per hour	$15.6
Variable manufacturing overhead	0.6 hours	$6.25 per hour	$3.75

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

The company produced 7,000 units during the month.

A total of 22,000 pounds of material were purchased at a cost of $61,600.

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

4,400 pounds of material remained in the warehouse.

During March, 4,400 direct labor-hours were worked at a rate of $26.50 per hour.

Variable manufacturing overhead costs during March totaled $16,700.

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

The materials quantity variance for March is:

$800 F$35,100 U$35,100 F$800 U

2)

The following labor standards have been established for a particular product:

Standard labor-hours per unit of output	8.9	hours
Standard labor rate	$12.70	per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked	6,700	hours
Actual total labor cost	$82,410
Actual output	1,000	units

What is the labor efficiency variance for the month?

$30,620 U$27,940 F$27,060 F$30,620 F