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The Albright Company uses standard costing and has established the following standards for its single product: Direct Materials Direct Labour Variable Manufacturing Overhead 2 litres

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The Albright Company uses standard costing and has established the following standards for its single product: Direct Materials Direct Labour Variable Manufacturing Overhead 2 litres at $3 per litre 0.5 hours at $8 per hour 0.5 hours at $2 per hour During November, the company made 4,000 units and incurred the following costs: Direct Materials Purchased Direct Materials Used Direct Labour Used Actual Variable Manufacturing Overhead 8,100 litres at $3.10 per litre 7,600 litres 2,200 hours at $8.25 per hour $4,175 The company applies variable manufacturing overhead to products on the basis of direct labour hours. A) 1. What was the materials price variance for November? $810 favourable. B) $810 unfavourable, C) $2,310 favourable. $2,310 unfavourable, 2. What was the materials quantity variance for November? A) $300 unfavourable, B) $1,200 favourable. $1,200 unfavourable, $1,500 favourable. 3. What was the labour rate variance for November? A) $550 unfavourable, $1,050 unfavourable, C) $2,150 favourable. $2,150 unfavourable. B)

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