Questions 7 - 13 refer to the following:

ABC Company has set the following standards for the production of one case of product:

Usage Cost Total per unit

Direct Materials .6 yards $3 per yard $1.80

Direct Labor .5 hours $18 per hour $9.00

Variable Overhead .5 hours $4 per hour $2.00

Fixed Overhead .5 hours $5 per hour $2.50

$15.30

• Purchased 2,000 yards at a cost of $6,600
• Used 1,750 yards to make 3,000 good units
• Paid $27,690 for 1,560 hours of labor.
• Actual variable OH costs were $6,396.
• Budgeted Fixed Overhead was $8,750 for 1,750 budgeted hours.
• Actual Fixed Overhead was $9,100.

7. The materials price variance for March is:

a. $600 U c. $300 U

b. $600 F d. $300 F

8. The material quantity variance for March is:

a. $150 U c. $900 U

b. $150 F d. $900 F

9. The labor rate variance for March is:

a. $470U c. $390 U

b. $470 F d. $390 F.

10. The labor efficiency variance for March is:

a. $1,080 U c. $1,920 U

b. $1,080 F d. $1,920 F

11. The variable overhead efficiency variance for March is:

a. $240 U c. $360 U

b. $240 F d. $360 F

12. Compute the fixed overhead budget variance:

a. $440 U c. $350 U

b. $440 F d. $350 F

13. Compute the fixed overhead volume variance:

a. $1,250 U c. $2,400 U

b. $1,250 F d. $2,400 F