5.

Majer Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		3.0	ounces	$	11.50	per ounce	$	34.50
Direct labor		0.8	hours	$	17.50	per hour	$	14.00
Variable overhead		0.8	hours	$	10.00	per hour	$	8.00

The company reported the following results concerning this product in February.

Originally budgeted output		10,800	units
Actual output		10,600	units
Raw materials used in production		31,320	ounces
Actual direct labor-hours		8,680	hours
Purchases of raw materials		32,920	ounces
Actual price of raw materials	$	11.25	per ounce
Actual direct labor rate	$	18.00	per hour
Actual variable overhead rate	$	9.50	per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The materials price variance for February is:

6.

Majer Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		6.2	ounces	$	5.00	per ounce	$	31.00
Direct labor		0.6	hours	$	11.00	per hour	$	6.60
Variable overhead		0.6	hours	$	5.00	per hour	$	3.00

The company reported the following results concerning this product in February.

Originally budgeted output		5,500	units
Actual output		5,600	units
Raw materials used in production		33,000	ounces
Actual direct labor-hours		2,020	hours
Purchases of raw materials		35,400	ounces
Actual price of raw materials	$	7.10	per ounce
Actual direct labor rate	$	2.40	per hour
Actual variable overhead rate	$	5.20	per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for February is: