STANDARD COSTING

The following July information is for Kingston Company:

Standards:

Material 3.0 feet per unit @ $4.20 per foot

Labor 2.5 hours per unit @ $7.50 per hour

Actual:

Production 2,750 units produced during the month

Material 8,700 feet used; 9,000 feet purchased @ $4.50 per foot

Labor 7,000 direct labor hours @ $7.90 per hour

1. What is the material price variance (calculated at point of purchase)?

a. $2,700 U

b. $2,700 F

c. $2,610 F

d. $2,610 U

2. What is the material quantity variance?

a. $3,105 F

b. $1,050 F

c. $3,105 U

d. $1,890 U

3. What is the labor rate variance?

a. $3,480 U

b. $3,480 F

c. $2,800 U

d. $2,800 F

4. What is the labor efficiency variance?

a. $1,875 U

b. $938 U

c. $1,875 U

d. $1,125 U