egregorio Corporation makes a product that uses a material with the following direct material standards:

Standard quantity	2.4	kilos per unit
Standard price	$6.00	per kilo

The company produced 6,600 units in November using 16,180 kilos of the material. During the month, the company purchased 18,220 kilos of the direct material at a total cost of $105,676. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for November is:

Multiple Choice

• $2,940 F

• $2,940 U

• $3,644 F

• $3,644 U

Gilder Corporation makes a product with the following standard costs:

	Standard Quantity or Hours		Standard Price or Rate			Standard Cost Per Unit
Direct materials	7.50	grams	$	7.00	per gram	$	52.50
Direct labor	0.45	hours	$	25.00	per hour	$	11.25
Variable overhead	0.45	hours	$	5.00	per hour	$	2.25

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

Originally budgeted output	4,500	units
Actual output	4,680	units
Raw materials used in production	32,524	grams
Purchases of raw materials	36,524	grams
Actual direct labor-hours	1,750	hours
Actual cost of raw materials purchases	$244,710
Actual direct labor cost	$42,245
Actual variable overhead cost	$9,130

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 June is:

Multiple Choice

• $17,772 F

• $18,032 F

• $18,032 U

• $180 U