QUESTION 23

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	1.4 hours	$10.00 per hour
Variable overhead	1.4 hours	$4.00 per hour

In March the company produced 4,800 units using 10,320 kilos of the direct material and 2,300 direct labor-hours. During the month, the company purchased 10,890 kilos of the direct material at a cost of $76,770. The actual direct labor cost was $38,242 and the actual variable overhead cost was $11,943.

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 March is: (Do not round intermediate calculations.)

	A.	$540 F
	B.	$400 U
	C.	$400 F
	D.	$540 U

7 points

QUESTION 24

Niemiec Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:

	Hour
Move time	2.3
Wait time	19.3
Queue time	11.4
Process time	1.3
Inspection time	0.9

The manufacturing cycle efficiency (MCE) was closest to: (Round your intermediate calculation and final answer to 2 decimal places.)

	A.	0.02
	B.	0.08
	C.	0.92
	D.	0.16