A.)

Blue Corporation's standards call for 3,900 direct labor-hours to produce 1,300 units of product. During May 1,200 units were produced and the company worked 1,200 direct labor-hours. The standard hours allowed for May production would be:

3,900 hours

1,200 hours

3,600 hours

2,700 hours

B.)

The following labor standards have been established for a particular product:

Standard labor-hours per unit of output	9.9	hours
Standard labor rate	$13.70	per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked	7,700	hours
Actual total labor cost	$102,410
Actual output	1,000	units

What is the labor efficiency variance for the month?

$33,220 F

$33,220 U

$29,260 F

$30,140 F

C.)

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	0.4 hours	$12.00 per hour
Variable overhead	0.4 hours	$2.00 per hour

In March the company produced 4,600 units using 10,100 kilos of the direct material and 2,080 direct labor-hours. During the month, the company purchased 10,670 kilos of the direct material at a cost of $76,550. The actual direct labor cost was $38,258 and the actual variable overhead cost was $11,959.

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:

$1,720 U

$1,860 F

$1,860 U

$1,720 F