Gilder Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	4.5 grams	$5.00 per gram	$22.50
Direct labor	0.8 hours	$10.00 per hour	$8.00
Variable overhead	0.8 hours	$5.00 per hour	$4.00

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

Originally budgeted output	6,700	units
Actual output	6,600	units
Raw materials used in production	28,390	grams
Purchases of raw materials	31,900	grams
Actual direct labor-hours	4,600	hours
Actual cost of raw materials purchases	$162,690
Actual direct labor cost	$50,140
Actual variable overhead cost	$21,620

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 price variance for June is:

$3,190 F

$3,190 U

$2,852 U

$2,852 F

2)

Morie Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.71 direct labor-hours. The direct labor rate is $10.40 per direct labor-hour. The production budget calls for producing 7,400 units in March and 7,200 units in April. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5,480 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months?

$107,806.40

$113,984.00

$128,044.80

$110,156.80