22.

The predetermined overhead rate for Concord Corporation is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $3804 variable and $2412 fixed, and standard hours allowed for the product produced in June was 1200 hours. The total overhead variance is

$1212 U.

$216 F.

$1212 F.

$216 U.

23. The predetermined overhead rate for Oriole Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $6512 variable and $3960 fixed, and 1100 units were produced. The direct labor standard is 2 hours per unit produced. The total overhead variance is

$528 U.

$1320 F.

$528 F.

$1320 U.

24. If 10,000 pounds of direct materials are purchased for $9,300 on account and the standard cost is $.90 per pound, the journal entry to record the purchase is

Raw Materials Inventory	9,000
Materials Price Variance	300
Accounts Payable		9,300

Work In Process Inventory	9,300
Accounts Payable		9,000
Materials Quantity Variance		300

Raw Materials Inventory	9,300
Accounts Payable		9,300

Raw Materials Inventory	9,300
Accounts Payable		9,000
Materials Price Variance		300

25 If a company purchases raw materials on account for $24830 when the standard cost is $21500, it will

debit Materials Price Variance for $3330.

debit Materials Quantity Variance for $3330.

credit Material Quantity Variance for $3330.

credit Materials Price Variance for $3330.