42. Cox Engineering performs cement core tests in its laboratory. The following standards have been set for each core test performed:

During March, the laboratory performed 2,000 core tests. On March 1 no direct materials (sand) were on hand. Variable manufacturing overhead is assigned to core tests on the basis of standard direct labor-hours. The following events occurred during March: 8,600 pounds of sand were purchased at a cost of $7,310. 7,200 pounds of sand were used for core tests. 840 actual direct labor-hours were worked at a cost of $8,610. Actual variable manufacturing overhead incurred was $3,200.

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Part 1) The labor rate variance for March is:

a. $1,470 unfavorable

b. $4,578 unfavorable

c. $1,470 favorable

d. $4,578 favorable

Part 2) The labor efficiency variance for March is:

a. $192 unfavorable

b. $192 favorable

c. $480 unfavorable

d. $480 favorable

Part 3) The variable overhead efficiency variance for March is:

a. $320 unfavorable

b. $360 unfavorable

c. $320 favorable

d. $360 favorable

Standard Hours Standard Price or Quantity or Rate S0.75 per pound Direct matcrials.................................. 3 pounds Direct labor 0.4 hours $12 per hour 0.4 hours $9 per hour Variable manufacturing overhead