8 9 0 1 2 3 Direct Material 4 Direct Labour 5 Variable Manufacturing Overhead Use this data for questions 6-10 The Litton Company has established standards as follows: 3 kgs. @ $4/kg. = $12 per unit 2 hrs. @ $8/hr. = $16 per unit 2 hrs. @ $5/hr. = $10 per unit 6 7 Actual production figures for the past year are given below. 3 9 Units Produced . Direct Material Used 1 Direct Material Purcahsed (3,000 kgs.) 600 2,000 kgs. $11,400 2 Direct Labour Cost (1,100 hrs.) 3 Variable Manufacturing Overhead Cost Incurred $9,240 $5,720 4 5 Note: 5 The company records the materials price variance when materials are purchased. The company applies variable manufacturing overhead to products on the basis of direct labour hours. 8 9 6. What was the materials price variance? 7. What was the materials quantity variance? Instructions SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5 SECTION 6 14 67 68 69 70 71 The company applies variable manufacturing overhead to products on the basis of direct labour hours. 6. What was the materials price variance? 72 73 7. What was the materials quantity variance? 74 75 76 77 8. What was the labour rate variance? 78 79 80 81 9. What was the labour efficiency variance? 82 83 84 85 10. What was the variable overhead spending variance? 36 87 8 9 11. Which of the following statements about reciprocal service department costs is correct