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Question Fox Run Co. produces a product which requires 6 hours of direct laborat $25.60 per hour. During October, Fox Run's actual payroll was $314.496 and the company used 12,600 direct labor hours to produce 2.000 units of the product. What is Fox Run's direct labor quantity variance? 58 064, unfavorable SIS unfavorable 57.296 unfavorable $8.064, favorable You Anward Corectly The direct labor quantity variance measures the impact of the actual labor used being different from the standard labor allowed to be used on labor costs for a period. It is calculated by multiplying the difference between the standard labor that should be used and the actual labor used by the standard labor price. Fox "should have used 12,000 hours of labor to produce 2,000 units (2.000 units x 6 hours per unit). Since Fox used 600 extra hours and the standard price is $25.60 per hour the direct labor quantity variance is $15.360 ($25.60 x 600) unfavorable. Question 16 Clipper Industries manufactures two types of scissors: a basic model, and a more durable fabric model. During the current year, Clipper accumulated the following summary information about its two products: Basic Model Fabric Model Selling Price $ 15.00 28.00 Number of units manufactured and sold 150,000 210.000 Basic Model Fabric Model Units Costs Units Costs January 15.000 $150,000 21.000 $ 210,000 February 10.500 STON, 150 14,700 S IS1410 March 9.000 S 99,000 12.600 $ 138,600 April 6000 61.000 9200 S 92.920 dhe Basic Model Fabric Model Units Costs Units Casts May 10 500 5100 200 14.700 S 152.880 7.500 S 78,750 10500 S 110.250 7.500 79.250 10.500 STOS. 150 August 12.000 3 124,800 16,800 $ 174,720 September 13.500 $144.450 18,900 202.230 October 12.000 $121.600 16,800 $ 173,040 November 16.500 171.250 1.100 5242 550 December 30.000 S2K2 500 44,000 5433.400 Totals 150,000 1532 350 212 800 2.190,150 Using the high-low method, estimate the fixed production costs of both the basic model and the fabric model. Do not round intermediate calculations 56.125.00 fixed for fabric model, 2.905. OS fixed costs for basic model. 56,125.00 fixed costs for basic model, 2.908.fixed costs for fabric model 5221,100.00 fined costs for base model, $340,450.00 Fixed costs for fabric model 5276 375.00 fixed costs basic model. S430,491.95 fixed costs for fatic model