Majer Corporation makes a product with the following standard costs: Standard Standard Quantity Standard Price or Cost Per Rate $ 12.00 per ounce $ 18.00 per hour $10.50 per hour Unit or Hours 2.0 ounces 6.6 hours 0.6 hours Direct materials Direct labor Variable overhead $24 . ee $10 . 8 $ 6.30 The company reported the following results concerning this product in February originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate 11, 200 units 11, 000 units 16, 800 ounces 6, 800 hours 18, 400 ounces 11.75 per ounce $14.80 per hour $ 7.80per 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 materials price variance for February is: Multiple Cholce $66,600 U $66,600 F $4,600 F $4600 U Majer Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Cost Per Rate Unit Direct materials Direct labor Variable overhead 6.6 ounces 0.5 hours 6.5 hours $4.00 per ounce $ 13.00 per hour $ 4.00 per hour $26.40 $ 6.5 2.00 The company reported the following results concerning this product in Februany Originally budgeted output Actual output 5, 200 units 8, 000 units Raw materials used in production 38,300 ounces Actual direct labor hours Purchases of raw materials Actual price of raw materials$42.90 per ounce Actual direct labor rate Actual variable overhead rate 1,930 hours 32, 700 ounces 52.40 per hour $ 3.10 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 rate variance for February is Multiple Choice $1,737 F $1,742 F $1,737 U $1,742 U , Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard diet labor-hours The company uses a standard cost system and has established the following standards for one unit of product Standard Price or Standard Cost Standard Quantity Rate 2.5 pounds 8.6 hours 0.6 $8.00 per pound $20.6e $26.60 per hour $15.60 s 6.25 per hour Direct materials Direct labor Variable manufacturing overhead hours During March, the following activity was recorded by the company The company produced 7,000 units during the month. A total of 22,000 pounds of material were purchased at a cost of $61,600. . There was no beginning inventory of materials on hand to start the month; at the end of the month, 4,400 pounds of material remained in the warehouse. During March, 4,400 direct labor-hours were worked at a rate of $26.50 per hour Variable manufacturing overhead costs during March totaled $16,700 The direct materials purchases variance is computed when the materials are purchased The materials quantity variance for March is: Mutiple Choice 800 F 35,100 F $35,100 U $800 U The following labor standards have been established for a particular product: Standard labor-hours per unit of output Standard labor rate 9.3 hours $16.15 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked Actual total labor cost Actual output 11,400 hours $181, 830 1, 850 units What is the labor rate variance for the month? Multiple Choice $370 F $2,280 F $2.280 U $370 U
