Question
The following information applies to Questions 34 37: McKinney Company McKinney Company has the following information available for October when 3,500 units were produced (round
The following information applies to Questions 34 37:
McKinney Company
McKinney Company has the following information available for October when 3,500 units were produced (round answers to the nearest dollar).
| Standards: |
| ||
| Material | 3.5 pounds per unit @ $4.50 per pound | ||
| Labor | 5.0 hours per unit @ $10.25 per hour | ||
|
|
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| Actual: |
| ||
| Material purchased | 12,300 pounds @ $4.25 | ||
| Material used | 11,750 pounds | ||
| 17,300 direct labor hours @ $10.20 per hour |
| ||
34. Refer to McKinney Company. What is the labor rate variance?
| a. | $875 F |
| b. | $865 F |
| c. | $865 U |
| d. | $875 U |
35. Refer to McKinney Company. What is the labor efficiency variance?
| a. | $2,050 F |
| b. | $2,050 U |
| c. | $2,040 U |
| d. | $2,040 F |
36. Refer to McKinney Company. What is the material price variance (based on quantity purchased)?
| a. | $3,075 U |
| b. | $2,938 U |
| c. | $2,938 F |
| d. | $3,075 F |
37. Refer to McKinney Company. What is the material quantity variance?
| a. | $2,250 F |
| b. | $2,250 U |
| c. | $225 F |
| d. | $2,475 U |
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