6-

Hurren Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	4.3 grams	$6.00 per gram	$25.80
Direct labor	1.8 hours	$18.00 per hour	$32.40
Variable overhead	1.8 hours	$5.00 per hour	$9.00

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

Originally budgeted output	7,000	units
Actual output	6,900	units
Raw materials used in production	28,370	grams
Actual direct labor-hours	4,400	hours
Purchases of raw materials	31,700	grams
Actual price of raw materials purchased	$6.10	per gram
Actual direct labor rate	$18.90	per hour
Actual variable overhead rate	$4.70	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 quantity variance for June is:

A-$7,800 U

B-$7,930 F

C-$7,800 F

D-$7,930 U

7-

Hurren Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	5.4 grams	$8.00 per gram	$43.20
Direct labor	1.7 hours	$19.00 per hour	$32.30
Variable overhead	1.7 hours	$8.00 per hour	$13.60

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

Originally budgeted output	5,600	units
Actual output	5,500	units
Raw materials used in production	28,480	grams
Actual direct labor-hours	5,500	hours
Purchases of raw materials	32,800	grams
Actual price of raw materials purchased	$8.10	per gram
Actual direct labor rate	$19.90	per hour
Actual variable overhead rate	$7.70	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 June is:

A-$3,280 U

B-$2,870 F

C-$2,870 U

D-$3,280 F

8-

Hurren Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	4.5 grams	$5.00 per gram	$22.50
Direct labor	0.8 hours	$10.00 per hour	$8.00
Variable overhead	0.8 hours	$5.00 per hour	$4.00

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

Originally budgeted output	6,700	units
Actual output	6,600	units
Raw materials used in production	28,390	grams
Actual direct labor-hours	4,900	hours
Purchases of raw materials	31,900	grams
Actual price of raw materials purchased	$5.10	per gram
Actual direct labor rate	$10.90	per hour
Actual variable overhead rate	$4.70	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 labor efficiency variance for June is:

A-$4,142 U

B-$3,800 U

C-$4,142 F

D-$3,800 F

9-

Hurren Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	9.60 grams	$6.00 per gram	$57.60
Direct labor	0.1 hours	$20.00 per hour	$2.00
Variable overhead	0.1 hours	$6.00 per hour	$0.60

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

Originally budgeted output	8,100	units
Actual output	8,200	units
Raw materials used in production	41,200	grams
Purchases of raw materials	48,100	grams
Actual direct labor-hours	690	hours
Actual cost of raw materials purchases	$263,190
Actual direct labor cost	$8,303
Actual variable overhead cost	$3,274

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 labor rate variance for June is:

A-$5,517 F

B-$5,497 F

C-$5,517 U

D-$5,497 U

10-

Landram Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate
Direct materials	2.0 kilos	$7.00 per kilo
Direct labor	1.1 hours	$19.00 per hour
Variable overhead	1.1 hours	$7.00 per hour

In March the company produced 4,800 units using 10,170 kilos of the direct material and 2,150 direct labor-hours. During the month, the company purchased 10,740 kilos of the direct material at a cost of $76,620. The actual direct labor cost was $38,251 and the actual variable overhead cost was $11,952.

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 March is:

A-$1,300 U

B-$1,440 F

C-$1,440 U

D-$1,300 F