2.

Use the following data to find the direct labor rate variance if the company produced 7,000 units of product during the period.

Standard:
Direct labor (3.2 hrs. per unit @ $7/hr.)	$22.40	per unit
Actual cost incurred:
Direct labor (24,500 hrs. @ $7.50/hr.)	$183,750

a.$12,250 unfavorable.

b.$14,700 unfavorable.

c.$14,700 favorable.

d.$12,250 favorable.

e.$26,950 favorable.

3.

The following company information is available. The direct materials quantity variance is:

Direct materials used for production	36,000 gallons
Standard quantity for units produced	34,400 gallons
Standard cost per gallon of direct material	$6.00
Actual cost per gallon of direct material	$6.10

a. $10,000 unfavorable.

b. $13,200 unfavorable.

c.$9,600 unfavorable.

d.$10,000 favorable.

e.$13,200 favorable.

4.

A flexible budget may be prepared:

a.Before the operating period only.

b.After the operating period only.

c.During the operating period only.

d.At any time in the planning period.

e.Only when the company encounters excessive costs.