The Collins Corporation uses standard costing and has established the following direct material and direct labor standards for each unit of the single product it makes:

• Direct materials: 4 gallons at $8 per gallon

• Direct labor: 1 hour at $16 per hour

During July, the company made 6,000 units of product and incurred the following costs:

• Direct materials purchased: 26,800 gallons at $8.20 per gallon

• Direct materials used: 25,200 gallons

• Direct labor used: 5,600 hours at $15.30 per hour

The direct materials purchases variance is computed when the materials are purchased.

46/65.The materials price variance for July was: A. $5,360 Favorable B. $5,360 Unfavorable C. $5,040 Favorable D. $5,040 Unfavorable

47/66.The materials quantity variance for July was: A. $22,960 Unfavorable B. $22,400 Unfavorable C. $9,600 Unfavorable D. $9,840 Unfavorable

48/67.The labor rate variance for July was: A. $3,920 Unfavorable B. $6,120 Unfavorable C. $1,120 Favorable D. $3,920 Favorable

49/68.The labor efficiency variance for July was: A. $6,400 Favorable B. $89,600 Favorable C. $10,320 Favorable D. $6,120 Favorable