Question
Blumenthal Manufacturing makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate 13 Direct materials Direct labor Variable
Blumenthal Manufacturing makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate 13 Direct materials Direct labor Variable overhead 3.5 pounds $3.00 per pound 0.8 hours $19.00 per hour 0.8 hours $8.00 per hour In July the company produced 3,800 units using 12,240 pounds of the direct material and 2,200 direct labor-hours. During the month, the company purchased 13,000 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $51,612 and the actual variable overhead cost was $20,148. 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 efficiency variance for July is: O a. $-15,960.00 O b. $-30,400.00 Oc. $41,800.00 O d. $72,200.00 17 25 33 Finis
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