Blue Corporation's standards call for 6,650 direct labor-hours to produce 1,900 units of product. During May 1,600 units were produced and the company worked 1,800 direct labor-hours. The standard hours allowed for May production would be:

6,650 hours

1,800 hours

5,600 hours

5,050 hours

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

Standard labor-hours per unit of output	9.7	hours
Standard labor rate	$13.50	per hour

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

Actual hours worked	7,500	hours
Actual total labor cost	$98,250
Actual output	900	units

What is the labor efficiency variance for the month?

$19,605 F

$19,605 U

$16,113 F

$16,605 F

The following standards for variable manufacturing overhead have been established for a company that makes only one product:

Standard hours per unit of output	7.4	hours
Standard variable overhead rate	$13.80	per hour

The following data pertain to operations for the last month:

Actual hours	2,775	hours
Actual total variable manufacturing overhead cost	$38,995
Actual output	200	units

What is the variable overhead efficiency variance for the month?

$18,571 U

$17,871 U

$700 F

$20,424 F

Landram Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate
Direct materials	2.0 liters	$7.00 per liters
Direct labor	1.6 hours	$12.00 per hour
Variable overhead	1.6 hours	$6.00 per hour

The company produced 5,000 units in April using 10,340 liters of direct material and 2,320 direct labor-hours. During the month, the company purchased 10,910 liters of the direct material at $7.30. per liter. The actual direct labor rate was $12.85 per hour and the actual variable overhead rate was $5.80 per hour.

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 quantity variance for April is:

$2,380 F

$2,482 U

$2,482 F

$2,380 U

Hurren Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	5.5 grams	$4.00 per gram	$22.00
Direct labor	1.8 hours	$20.00 per hour	$36.00
Variable overhead	1.8 hours	$9.00 per hour	$16.20

The company reported the following results concerning this product in June.

Originally budgeted output	5,700	units
Actual output	5,600	units
Raw materials used in production	28,490	grams
Actual direct labor-hours	5,600	hours
Purchases of raw materials	32,900	grams
Actual price of raw materials purchased	$4.10	per gram
Actual direct labor rate	$20.90	per hour
Actual variable overhead rate	$8.70	per hour

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 June is:

$3,290 U

$2,872 F

$2,872 U

$3,290 F

Hurren Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	8.10 grams	$4.00 per gram	$32.40
Direct labor	0.2 hours	$19.00 per hour	$3.80
Variable overhead	0.2 hours	$9.00 per hour	$1.80

The company reported the following results concerning this product in June.

Originally budgeted output	6,300	units
Actual output	6,400	units
Raw materials used in production	39,700	grams
Purchases of raw materials	45,100	grams
Actual direct labor-hours	540	hours
Actual cost of raw materials purchases	$260,940
Actual direct labor cost	$7,928
Actual variable overhead cost	$2,884

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 labor rate variance for June is:

$2,351 F

$2,332 F

$2,351 U

$2,332 U

Pardoe, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product:

	Standard Quantity	Standard Price or Rate	Standard Cost
Direct materials	1.5 pounds	$5.25 per pound	$7.875
Direct labor	0.5 hours	$15 per hour	$7.5
Variable manufacturing overhead	0.5 hours	$3.50 per hour	$1.75

During March, the following activity was recorded by the company:

The company produced 4,800 units during the month.

A total of 10,700 pounds of material were purchased at a cost of $29,960.

There was no beginning inventory of materials on hand to start the month; at the end of the month,

2,140 pounds of material remained in the warehouse.

During March, 2,600 direct labor-hours were worked at a rate of $15.50 per hour.

Variable manufacturing overhead costs during March totaled $4,750.

The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for March is:

$7,140 F

$15,760 F

$15,760 U

$7,140 U

Midgley Corporation makes a product whose direct labor standards are 0.9 hours per unit and $21 per hour. In April the company produced 7,000 units using 5,800 direct labor-hours. The actual direct labor cost was $121,800.

The labor efficiency variance for April is:

rev: 11_22_2014_QC_59767

$10,500 U

$10,500 F

$11,500 F

$11,500 U

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours.

Standard hours per unit of output	4.80	machine-hours
Standard variable overhead rate	$11.60	per machine-hour

The following data pertain to operations for the last month:

Actual hours	8,700	machine-hours
Actual total variable manufacturing overhead cost	$95,950
Actual output	1,700	units

What is the variable overhead rate variance for the month?

$5,251 F

$5,251 U

$4,970 F

$4,970 U

Buis Corporation, which makes landing gears, has provided the following data for a recent month:
Budgeted production	2,100	gears
Standard machine-hours per gear	5.6	machine-hours
Budgeted supplies cost	$6.20	per machine-hour
Actual production	1,300	gears
Actual machine-hours	8,200	machine-hours
Actual supplies cost (total)	$49,712
Required:
Determine the rate and efficiency variances for the variable overhead item supplies and indicate whether those variables are favorable or unfavorable. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)
Variable overhead rate variance	$	(F U, OR NONE)
Variable overhead efficiency variance	$	(F, U, OR NONE)