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The Apoundright Company uses standard costing and has established the following standards for its single product: Direct materials: 2 gallons at $3 per gallon Direct
The Apoundright Company uses standard costing and has established the following standards for its single product: Direct materials: 2 gallons at $3 per gallon Direct labor: 0.5 hours at $8 per hour Variable overhead: 0.5 hours at $2 per hour During November, the company made 4,000 units and incurred the following costs: 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 company applies variable overhead to products on the basis of standard direct labor-hours. 7. The materials price variance for November was: A. $2,310 U B. $2,310 F C. $810 U D. $810 F 8. The materials quantity variance for November was: A. $1,200 U B. $1,200 F C. $300 U D. $1,500 F 9. The labor rate variance for November was: A. $1,050 U B. $550 U C. $2,150 U D. $2,150 F 10. The labor efficiency variance for November was: A. $1,050 U B. $550 U C. $1,600 F D. $1,600 U
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