QUESTION 21

Hurren Corporation makes a product with the following standard costs:

Inputs	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	3.3 grams	$3.00 per gram	$9.90
Direct labor	0.8 hours	$12.00 per hour	$9.60
Variable overhead	0.8 hours	$9.00 per hour	7.20

The company reported the following results concerning this product in June.

Originally budgeted output	8,600	units
Actual output	8,500	units
Raw materials used in production	27,000	grams
Actual direct labor-hours	3,400	hours
Purchases of raw materials	30,700	grams
Actual price of raw materials purchased	$3.10	per gram
Actual direct labor rate	$12.90	per hour
Actual variable overhead rate	$8.70	per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials price variance is computed when the materials are purchased.

The materials price variance for June is: (Round your intermediate calculations to 2 decimal places.)

	A.	$3,070 F
	B.	$2,715 F
	C.	$2,715 U
	D.	$3,070 U

7 points

QUESTION 22

Landram Corporation makes a product with the following standard costs:

Inputs	Standard Quantity or Hours	Standard Price or Rate
Direct materials	2.0 kilos	$7.00 per kilo
Direct labor	1.3 hours	$17.00 per hour
Variable overhead	1.3 hours	$5.00 per hour

In March the company produced 4,500 units using 10,190 kilos of the direct material and 2,170 direct labor-hours. During the month, the company purchased 10,760 kilos of the direct material at a cost of $76,640. The actual direct labor cost was $38,249 and the actual variable overhead cost was $11,950.

The company applies variable overhead on the basis of direct labor-hours. The direct materials price variance is computed when the materials are purchased.

The materials quantity variance for March is:

	A.	$8,330 F
	B.	$8,330 U
	C.	$8,476 U
	D.	$8,476 F