7. If variable manufacturing overhead is applied on the basis of direct labor-hours and the variable overhead rate variance is favorable, then: A) the actual variable overhead rate exceeded the standard rate. B) the standard variable overhead rate exceeded the actual rate. C) the actual direct labor-hours exceeded the standard direct labor-hours allowed for the actual output. D) the standard direct labor-hours allowed for the actual output exceeded the actual hours. 12. The following materials standards have been established for a particular product: Standard quantity per unit of output . Standard price.. 5.3 meters $17.20 per meter The following data pertain to operations concerning the product for the last month: Actual materials purchased. Actual cost of materials purchased.. Actual materials used in production.. Actual output... 8,100 meters $141,345 7,600 meters 1,400 units What is the materials price variance for the month? A) $3,141 U B) $2,025 U C) $8,600 U D) $8,725 U 13. A total of 6,850 kilograms of a raw material was purchased at a total cost of $21,920. The materials price variance was $1,370 favorable. The standard price per kilogram for the raw material must be: A) $0.20 B) $3.00 C) $3.20 D) $3.40