Pardoe, Inc., manufactures a single product. The company uses a standard cost system and has established the following standards for one unit of product:

	Standard Quantity	Standard Price or Rate	Standard Cost per unit
Direct materials	1.5 pounds	$3.00 per pound	$4.50
Direct labor	0.6 hours	$6.00 per hour	$3.60

During March, the following activity was recorded by the company:

The company produced 3,000 units during the month.

A total of 8,000 pounds of material were purchased at a cost of $23,000.

There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,000 pounds of material remained in the warehouse.

During March, 1600 direct labor hours were worked at a rate of $6.50 per hour.

Pick the closest answer numerically and then choose based on the U or F.

The materials price variance for March is:

a.

$5,000 U

b.

$750 F

c.

$1,000 U

d.

$750 U

e.

$5,000 F

$1,000 F

The labor efficiency variance for March is:

a.

$5,040 F

b.

$1,200 U

c.

$5,040 U

d.

$3,120 F

e.

$3,120 U

f.

$1,200 F

The labor efficiency variance for March is:

a.

$5,040 F

b.

$1,200 U

c.

$5,040 U

d.

$3,120 F

e.

$3,120 U

$1,200 F

The materials quantity variance for March is:

	a.	$4,500 U
	b.	$6,000 F
	c.	$6,000 U
	d.	$4,500 F
	e.	$10,500 U
	f.	$10,500 F