Larance Detailing's cost formula for its materials and supplies is $1,950 per month plus $14 per vehicle. For the month of November, the company planned for activity of 90 vehicles, but the actual level of activity was 55 vehicles. The actual materials and supplies for the month was $2,490.

The materials and supplies in the flexible budget for November would be closest to:

$1,855

$3,210

$2,490

$2,720

Epley Corporation makes a product with the following standard costs:

Standard Quantity or HoursStandard Price or RateDirect materials4.5 pounds$4.0 per poundDirect labor0.8 hours$21.00 per hourVariable overhead0.8 hours$9.50 per hour

In July the company produced 3,320 units using 13,280 pounds of the direct material and 2,776 direct labor-hours. During the month, the company purchased 14,040 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $57,895 and the actual variable overhead cost was $25,260.

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 labor rate variance for July is:

$2,119 U

$401 U

$2,119 F

$401 F