a.

b.

c.

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e.

Oman, Inc., manufactures a single product in which variable manufacturing overhead is ass ned on the basis of standardimet labor-hours. The company uses a standard cost system and has established the following standards for at unit of product standard QuantLLY 5.0 pounds 0.5 hours 0.5 hoors Direct material Direct labor Variable manufacturing overhead ALAMAT PO Hate 50.60 DOE pound $33.50 per hour $8.50 per hour 16.15 During March, the following activity was recorded by the company: The company produced 2,400 units during the month. A total of 19,400 pounds of material were purchased at a cost of $13,580 There was no beginning inventory of materials on hand to start the month at the end of the month, 3,620 pounds of material remained in the warehouse. (.e. if we purchased 19,400 pounds and we still had 3,620 on-hand then we used 15.780 pounds) . During March, 1,090 direct labor-hours were worked at a rate of $30,50 per hour, Variable manufacturing overhead costs during March totaled $14,061. The direct materials purchases variance is computed when the materials are purchased, The materials quantity variance for March is: Edwards Corporation makes a product that uses a material with the quantity standard of 6 grams per unit of output and the price standard of $3.00 per gram. In January the company produced 8,250 units using 54,000 grams of the direct material, During the month the company purchased 52,500 grams of the direct material at $3.20 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for January is: $10.500 U $3,600 F $3,600 U $10.500 F The direct materials purchases variance is computed when the materials are purchased The labor rate variance for March is: $4,120 F O $3,270 U 0 $4,120 O $3,270 F The labor efficiency variance for March is: O $3,040 0 O $3,685 U O $3,685 F o $3,040 F The variable overhead rate variance for March is: O $4,796 F O $4,796 U O $5,120 F $5,120 U The variable overhead efficiency variance for March is: O $935 F 0 $1,060 U 0 $1,060 F O $9350