Figure 17-1

Max Company has developed the following standards for one of its products:

Direct materials 15 pounds 16 per pound

Direct labour 4 hours 24 per hour

Variable overhead 4 hours 14 per hour

The following activities occurred during the month of October:

Materials purchased10,000 pounds costing 170,000

Materials used7,200 pounds

Units produced500 units

Direct labour2,300 hours at 23.60 per hour

Actual variable overhead 30,000

The company records materials price variances at the time of purchase.

Refer to Figure 17-1. Max's variable standard cost per unit would be

296.

336.

152.

392.

IncorrectQuestion 5

0/ 10pts

Refer to Figure 17-1. Max's materials usage variance would be

40,000 unfavorable.

4,800 unfavorable.

4,800 favorable.

40,000 favorable.

IncorrectQuestion 6

0/ 10pts

Refer to Figure 17-1. Max's labor efficiency variance would be

7,200 unfavorable.

6,280 favorable.

7,200 favorable.

6,280 unfavorable.