Question 37 (2 points) Saved Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost. Jackson has established the following standards for one unit of product. Standard Hours Direct labour 1.25 hours Standard Rate $12.00 per hour During October, the total factory wages were $364,000, 90% of which were for direct labour. Jackson manufactured 22,000 units of product during October using 28,000 direct labour-hours. The total labour variance for October is 1) $2,400 F 2) $2,400 U 3) $6,000 F 4) $6,000 U Question 38 (2 points) Saved During September, 40,000 units were produced. The standard quantity of material allowed per unit was 5 pounds at a standard price of $2.50 per pound. If there was a favourable usage variance of $25,000 for September, the actual quantity of materials used must have been 1) 210,000 pounds O2) 190,000 pounds 3) 105,000 pounds 4) 95,000 pounds Next Page Page 38 of 50 Question 39 (2 points) Saved Firecracker Company has developed the following direct materials standards for one of its products. Direct materials: 15 pounds * $16 per pound The following activity occurred during the month of October: Materials purchased: Materials used: Units produced: 10,000 pounds costing $170,000 7,200 pounds 500 units The direct materials usage variance is 1) $4,800 F 2) $4,800 U 3) $40,000 F