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Mons. 7. Il refer to the following: ABC Company has set the following standards for the production of one case of Zesty Pretzels: Cost Usags

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Mons. 7. Il refer to the following: ABC Company has set the following standards for the production of one case of Zesty Pretzels: Cost Usags Direct Materials 9 pounds Direct Labor $5 per pound 4 hours Variable Overhead SIS per hour 4 hours $5 per hour Actual information recorded by ABC Company for the month of March is below: Purchased 7,000 pounds at a cost of $31,500 Used 5,616 pounds to make 5,200 good units Paid $32,214 for 2,184 hours of labor. Actual variable OH costs were $11,600. 7. The materials price variance for March is a. $3,500 unfavorable c. $3,420 unfavorable b. $3.500 favorable d. 53.420 favorable 8. The material quantity variance for March is: a. $11,600 unfavorable c. $4,680 unfavorable b. S11,600 favorable d. $4,680 favorable 9 The labor rate variance for March is: a. $546 unfavorable c. $1,014 unfavorable b. $546 favorable d. $1,014 favorable 10. The labor efficiency variance for March is: a. $1.560 unfavorable c. 89.240 unfavorable b. $1,560 favorable d. 89.240 favorable The variable overhead spending variance for March is: a. $1,400 unfavorable c. $680 unfavorable b. $1,400 favorable d. $680 favorable 12. An unfavorable fixed overhead volume variance would indicate that: a. fewer units were made during the period than had been budgeted b. more units were made during the period than had been budgeted c. fewer labor hours were worked during the period than had been budgeted d. more labor hours were worked during the period than had been budgeted The following information applies to questions 13 & 14: Actual fixed overhead cost: $35.200 Budgeted fixed overhead cost: S35,000 Standard fixed overhead rate, based on 10,000 machine hours: $3.50 per hour Standard machine hours per unit: 1/2 hour Actual units produced: 17,600 13. Compute the fixed overhead volume variance: a. $200 unfavorable c. $200 favorable b. $4,400 favorable d. S4,200 unfavorable 14. Compute the fixed overhead budget variance: a $4,400 favorable c. $4,200 favorable b. $200 unfavorable d. $200 favorable

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