Miguez Corporation makes a product with the following standard costs:

	Standard Quantity or Hours		Standard Price or Rate		Standard Cost Per Unit
Direct materials	3.3	liters	$ 8.00	per liter	$ 26.40
Direct labor	0.5	hours	$ 32.00	per hour	$ 16.00
Variable overhead	0.5	hours	$ 3.00	per hour	$ 1.50

The company budgeted for production of 3,600 units in September, but actual production was 3,500 units. The company used 6,440 liters of direct material and 1,780 direct labor-hours to produce this output. The company purchased 6,800 liters of the direct material at $8.20 per liter. The actual direct labor rate was $34.10 per hour and the actual variable overhead rate was $2.90 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 September is:

Multiple Choice

• $178 U

• $175 F

• $178 F

Doogan Corporation makes a product with the following standard costs:

	Standard Quantity or Hours		Standard Price or Rate
Direct materials	2.0	grams	$ 7.00	per gram
Direct labor	0.8	hours	$ 16.00	per hour
Variable overhead	0.8	hours	$ 4.00	per hour

The company produced 4,400 units in January using 10,140 grams of direct material and 2,120 direct labor-hours. During the month, the company purchased 10,710 grams of the direct material at $7.40 per gram. The actual direct labor rate was $16.95 per hour and the actual variable overhead rate was $3.70 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 materials quantity variance for January is:

Multiple Choice

• $9,380 F

• $9,916 U

• $9,916 F

• $9,380 U

Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 1,600 units. The costs and percentage completion of these units in beginning inventory were:

	Cost	Percent Complete
Materials costs	$ 6,700	50%
Conversion costs	$ 2,900	20%

A total of 8,000 units were started and 7,300 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

	Cost
Materials costs	$ 159,900
Conversion costs	$ 121,600

The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs.

The cost per equivalent unit for materials for the month in the first processing department is closest to:

Multiple Choice

• $15.72

• $18.00

• $15.20

• $15.97