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The Alabama Hospital performs testing in its laboratory. The following standards have been set for each test performed: Direct materials: 3 gallons at $4 per

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The Alabama Hospital performs testing in its laboratory. The following standards have been set for each test performed: Direct materials: 3 gallons at $4 per gallon Direct labor: 1.0 hours at $7 per hour Variable overhead: 1.0 hours at $2 per hour During May, the hospital performed 4,000 tests. On May 1 there were no direct materials on hand. Variable overhead is assigned to tests on the basis of direct labor hours. The following events occurred during May: Direct materials purchased: 8,100 gallons at $3.10 per gallon Direct materials used: 7,600 gallons Direct labor used: 2,200 hours at $8.25 per hour Actual variable overhead: $4,175 The hospital applies variable overhead to products on the basis of standard direct labor- hours. 7. The materials price variance for May was: A. $7,290 U B. $7,290 F C. $810 U D. $810 F 8. The materials quantity variance for May was: A. $1,200 U B. $1,200 F C. $300 U D. $17,600 F 9. The labor rate variance for May was: A. $2,750 U B. $550U C. $2,150 U D. $2,150 F 10. The labor efficiency variance for May was: A. $1,050 U B. $12,600 F C. $1,600F D. $1,600 U

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