Kennedy Corporation makes a product with the following standard costs: 1.The company budgeted for production of 2,400 units in June, but actual production was 2,500 units. The company used 19,850 pounds of direct material and 980 direct labor-hours to produce this output. The company purchased 21,700 pounds of the direct material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the actual variable overhead rate was $1.80 per hour. 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 variable overhead efficiency variance for June is:

Select one:

a. $36 U

b. $36 F

c. $40 U

d. $40 F

2.

Nicholas Manufacturing makes a product that has the following direct labor standards: The company budgeted for production of 6,400 units in October, but actual production was 6,500 units. The company used 610 direct labor-hours to produce this output. The actual direct labor rate was $21.80 per hour. The labor rate variance for October is:

Select one:

a. $122 U

b. $130 F

c. $122 F

d. $130 U