A company uses the following standard costs to produce a single unit of output.

Direct materials	7 pounds at $0.80 per pound =	$ 5.60
Direct labor	0.4 hour at $8.00 per hour =	$ 3.20
Manufacturing overhead	0.4 hour at $5.00 per hour =	$ 2.00

During the latest month, the company purchased and used 67,000 pounds of direct materials at a price of $0.90 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $28,952 based on 3,760 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $17,000 and fixed manufacturing overhead incurred was $10,000. Based on this information, the direct materials price variance for the month was:

Multiple Choice

• $1,000 favorable

• $6,700 unfavorable

• $4,300 favorable

• $4,300 unfavorable

• $3,200 unfavorable

The following information relating to a company's overhead costs is available.

Actual total variable overhead	$ 79,000
Actual total fixed overhead	$ 20,000
Budgeted variable overhead rate per machine hour	$ 2.00
Budgeted total fixed overhead	$ 16,000
Budgeted machine hours allowed for actual output	44,000

Based on this information, the total variable overhead variance is:

Multiple Choice

• $9,000 favorable.

• $9,000 unfavorable.

• $8,000 favorable.

• $8,000 unfavorable.

• $3,273 favorable.

Fletcher Company collected the following data regarding production of one of its products. Compute the direct labor rate variance.

Direct labor standard (2 hours @ $12.75/hour)	$ 25.50	per finished unit
Actual direct labor hours	64,600	hours
Actual finished units produced	32,000	units
Actual cost of direct labor	$ 895,850

Multiple Choice

• $79,850 favorable.

• $7,650 unfavorable.

• $72,200 favorable.

• $79,850 unfavorable.

• $72,200 unfavorable.