Accounting 48 Ch. 21 Test V1 1. Adams Co. uses the following standard to produce a single unit of its product Variable overhead (2 hrs @ $3/hr.) 56 Actual data for the month show variable overhead costs of $150,000, and 24,000 units produced. The total variable overhead variance is: a $6,00OF b. $6,000u C. $78,000U d. $78,00OF 0.00 Use the following information to answer questions 2-5 BITCO has determined that its standard costs to produce a single unit of output is as follows: Direct materials Direct labor Manufacturing overhead 6 pounds at $0.90 per po und 5.40 0.5 hour at $12.00 per hour$6.00 52.40 0.5 hour at $4.80 per hour During the latest month, the company purchased and used 58.000 pounds of direct materials at a price of S1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled S56.350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred totaled S15.000 and fixed manufacturing overhead incurred was $10.400 2. Based on BITCO's information, the direct materials price variance for the month was a. $6,000 unfavorable b. $1,800 favorable c. $1,000 favorable d. $5,800 unfavorable e. $1,800 unfavorable 3. Based on ITCO's information, the direct materials quantity variance for the month was: a. $1,800 favorable b. $5,800 unfavorable c. $5,800 favorable d. $1,800 unfavorable e. $1,000 favorable Based on BITCO's information, the direct labor rate variance for the month was: a. $1,200 favorable b. $3,650 favorable c. $2,450 favorable d. $3,650 unfavorable e. $1,200 unfavorable 4