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7. Oddo Corporation makes a product with the following standard costs Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials

7. Oddo 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 $7.70 per ounce $23.10
Direct labor 0.8 hours $22.00 per hour $17.60
Variable overhead 0.8 hours $6.00 per hour $4.80

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

Originally budgeted output 4,470 units
Actual output 4,270 units
Raw materials used in production 13,200 ounces
Actual direct labor-hours 3,806 hours
Purchases of raw materials 14,950 ounces
Actual price of raw materials $7.50 per ounce
Actual direct labor rate $19.00 per hour
Actual variable overhead rate $6.10 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 December is: $2,379 U $2,340 F $2,340 U $2,379 F

8. Midgley Corporation makes a product whose direct labor standards are 0.9 hours per unit and $27 per hour. In April the company produced 7,300 units using 6,070 direct labor-hours. The actual direct labor cost was $127,470.

The labor efficiency variance for April is:

$13,500 U

$13,500 F

$49,920 F

$49,920 U

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