Last year, Scott Corporation budgeted for production and sales for 11,000 units. The company produced and sold 10,500 units. Each unit has a standard requiring 2 feet of material at a budgeted cost of $1.50 per foot and 30 minutes of sewing time at a cost of $0.30 per minute. Actual costs for the production of 10,500 units were $33,880 for materials (22,000 feet at $1.54 per foot) and $92,800 for labor (320,000 minutes at $0.29 per minute). Determine the direct material price variance and direct material quantity variance for Scott.

Select one:

a.

DM Price Variance is 880 U.

DM Quantity variance is1500 U.

b.

DM Price Variance is 1500 F.

DM Quantity variance is 880 F.

c.

DM Price Variance is 1500 U.

DM Quantity variance is 880 U.

d.

DM Price Variance is 880 F.

DM Quantity variance is1500 F.

B) Determine the direct labor wage (sometimes called rate) variance and direct labor efficiency variance for Scott.

Select one:

a.

DL Rate Variance is 1500 U.

DL Efficiency Variance is 3200 F.

b.

DL Rate Variance is 1500 F.

DL Efficiency Variance is 3200 U.

c.

DL Rate Variance is 3200 U.

DL Efficiency Variance is 1500 F.

d.

DL Rate Variance is 3200 F.

DL Efficiency Variance is 1500 U.