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Lindros Corporation makes hockey pucks, Following are the standard costs for producing the hockey pucks: Inputs Standard Quantity or Hours Standard Price or Rate Direct
Lindros Corporation makes hockey pucks, Following are the standard costs for producing the hockey pucks: |
Inputs | Standard Quantity or Hours | Standard Price or Rate |
Direct materials | 2.0 kilos | $7.00 per kilo |
Direct labor | 1.2 hours | $12.00 per hour |
Variable overhead | 1.2 hours | $2.00 per hour |
In April Lindros produced 4,900 hockey pucks using 10,300 kilos of the direct material and 2,280 direct labor-hours. During April, the company purchased 10,870 kilos of the direct material at a cost of $76,750. The actual direct labor cost was $38,240 and the actual variable overhead cost was $11,941. |
Lindros applies variable overhead on the basis of direct labor-hours. The direct materials price variance is computed when the materials are purchased. |
The materials quantity variance for April is: |
Multiple Choice
$3,500 U
$3,530 F
$3,500 F
$3,530 U
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