Question
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
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:
|
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