TB MC Qu. 10-154 Majer Corporation makes a product with ...

Majer Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		6.1	ounces	$	3.00	per ounce	$	18.30
Direct labor		0.4	hours	$	16.00	per hour	$	6.40
Variable overhead		0.4	hours	$	3.00	per hour	$	1.20

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

Originally budgeted output		5,000	units
Actual output		6,100	units
Raw materials used in production		33,500	ounces
Actual direct labor-hours		2,070	hours
Purchases of raw materials		35,900	ounces
Actual price of raw materials	$	57.10	per ounce
Actual direct labor rate	$	47.60	per hour
Actual variable overhead rate	$	5.70	per hour

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

The variable overhead efficiency variance for February is:

Garrison 16e Rechecks 2017-10-31

rev: 04_13_2018_QC_CS-124401

Multiple Choice

• $1,110 U

• $1,105 F

• $1,110 F

• $1,105 U