1. Assume the following:

• The standard price per pound is $2.00.
• The standard quantity of pounds allowed per unit of finished goods is 4 pounds.
• The actual quantity of materials purchased and used in production is 50,200 pounds.
• The actual purchase price per pound of materials was $2.25.
• The company produced 13,000 units of finished goods during the period.

What is the materials price variance?

1. $12,550 U
2. $12,550 F
3. $13,052 U
4. $13,052 F

2. Assume the following:

• The standard labor rate per hour is $17.75.
• The standard labor-hours allowed per unit of finished goods is 3 hours.
• The actual quantity of labor hours worked during the period was 43,800 hours.
• The total actual direct labor cost for the period was $726,000.
• The company produced 15,000 units of finished goods during the period.

What is the labor efficiency variance?

1. $21,300 U
2. $21,300 F
3. $51,450 U
4. $51,450 F