Tharaldson Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		7.0	ounces	$	3.00	per ounce	$	21.00
Direct labor		0.3	hours	$	14.00	per hour	$	4.20
Variable overhead		0.3	hours	$	9.00	per hour	$	2.70

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

Originally budgeted output		2,400	units
Actual output		2,900	units
Raw materials used in production		22,000	ounces
Purchases of raw materials		23,100	ounces
Actual direct labor-hours		550	hours
Actual cost of raw materials purchases	$	45,000
Actual direct labor cost	$	12,400
Actual variable overhead cost	$	3,200

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 labor rate variance for June is:

Garrison 16e Rechecks 2017-10-31

Multiple Choice

$177 F

$4,700 F

$177 U

$4,700 U

.

Viger Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month:

Budgeted level of activity		9,100	MHs
Actual level of activity		9,300	MHs
Standard variable manufacturing overhead rate	$	7.80	per MH
Actual total variable manufacturing overhead	$	69,920

What was the variable overhead rate variance for the month?

Multiple Choice

$1,420 Favorable

$1,060 Favorable

$1,560 Unfavorable

$2,620 Favorable