A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours.

Standard hours per unit of output4.00DLHs

Standard variable overhead rate$11.35per DLH

The following data pertain to operations for the last month:

Actual direct labor-hours8,700DLHs

Actual total variable manufacturing overhead cost$95,860

Actual output2,100units

What is the variable overhead efficiency variance for the month?

Gipple Corporation makes a product that uses a material with the quantity standard of 9.3 grams per unit of output and the price standard of $8.00 per gram. In January the company produced 5,400 units using 26,870 grams of the direct material. During the month the company purchased 29,400 grams of the direct material at $8.10 per gram. The direct materials purchases variance is computed when the materials are purchased.

The materials price variance for January is:

Multiple Choice

• $5,022 F
• $2,940 U
• $5,022 U
• $2,940 F

Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $500 per month plus $81 per job plus $9 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in September to be 22 jobs and 142 meals, but the actual activity was 18 jobs and 139 meals. The actual cost for catering supplies in September was $3,160. The catering supplies in the planning budget for September would be closest to:

Multiple Choice

• $3,660
• $3,560
• $3,160
• $3,209