E connect Managerial Accounting 23 ACCOUNTING Chapter 8 Test Quesion 10 (of 12) 8.34 points The Liton Company hos established standards as follows Direct material: 3 pounds per unit o $A per pound $12 per unit Direct labor: 2 hours per unt$8 per hour $16 per unit Variable manufacturing overheod 2 hours per uno ss per hour-SO per unit Actual prodaction figures for the past year are given below. The compeny records the macerials price variance when materials are purchased Units produced. Direot material used. 600 units 2,000 pounds Direct material purchased (3,000 poundsS11,400 Direct labor cost (1,100 hours)... Variable manufacturing overhcad cost incurred..$5,720 $9,240 The compeny a epplies varieble manufacturing overhead to products on the basis of standard direct labor-hours The verinble overhead efficeecy variance is O $520 F Type here to seard