Question 1) Nongshin Company produced 107,000 instant noodles in 2021. The standard quantity of direct material was 0.2 pounds of flour per unit at a standard cost of $0.45 per pound. The accounting records showed that it used 19,260 pounds of flour for the production of 107,000 instant noodles and paid $9,341.10 for the purchase of 19,260 pounds of flour.

Compute the direct material cost variance.

A. $674.10 F

B. $674.10 U

C. $774.20 F

D. $774.20 U

Question 2) Compute the direct material efficiency variance.

A. $963 F

B. $963 U

C. $1,063 F

D. $1,063 U