Cruct 7 dors unfavorable fondres Use the following information to answer the NEXT SEVEN QUESTIONS: The Wade Company uses a standard costing system and has developed the following stan of their products: Direct Materials 20 pounds at $6 per pound Direct Labor 5 DLHs at $16 per DLH Variable Manufacturing Overhead 5 DLHs at $4 per DLH The following actual activity occurred during the month of November: Direct Materials purchased 250,000 pounds at $5.20 per pound Direct Materials used 220,000 pounds Units produced 10,000 units Direct Labor 48,000 DLHs at $15.00 per DLH Variable Manufacturing Overhead $204,000 The company records all direct materials price variances at the time of purchase. 8. The materials quantity variance would be: a. $120,000 Favorable. b. $120,000 Unfavorable. c. $100,000 Unfavorable. d. $20,000 Favorable. 3. Cannon Company had the following results last year: net operating income, $2,160; turnover, 5; and ROI, 18%. The company's average operating assets were: a. $300,000. b. $60,000. c. $10,800. d. $12,000