The following materials standards have been established for a particular product:

Standard quantity per unit of output	3.7	grams
Standard price	$13.00	per grams

The following data pertain to operations concerning the product for the last month:

Actual materials purchased	2,500	grams
Actual cost of materials purchased	$ 29,125
Actual materials used in production	1,800	grams
Actual output	400	units

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

Required:

a.

What is the materials price variance for the month? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.)

b

What is the materials quantity variance for the month? (Input the amount a as positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.)

2

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours.

Standard hours per unit of output	3.40	machine-hours
Standard variable overhead rate	$10.75	per machine-hour

The following data pertain to operations for the last month:

Actual hours	9,200	machine-hours
Actual total variable manufacturing overhead cost	$95,800
Actual output	2,500	units

What is the variable overhead efficiency variance for the month?

$3,952 U

$7,433 F

$7,525 U

$7,433 U