1. The labor part of the standard cost is based on

1. Time and motion studies
2. The average time to complete the task including set up and downtime
3. Both A and B
4. Neither A nor B

Use the following information to answer questions 5 through 10

HB Company makes baseball bats. The standard cost of one bat is as follows:

Materials 5 pounds of wood @ $5.00 a pound = $25

Labor .5 hours @ $30 = $15

Overhead .5 hours @ $20 ($15 fixed, $5 variable) = $10

Fixed overhead based on 5,100 normal capacity hours

Total $50

During March, HB produced 10,000 bats and had the following actual costs

Materials 50,100 pounds of wood (cost $245,490, all was used)

Labor 4,900 hours (cost $151,900)

Overhead Total cost $102,900

2. HBs March material quantity variance was

1. $10,000 favorable
2. $1,000 unfavorable
3. $500 favorable
4. $500 unfavorable

3. HBs March material price variance was

1. $50,000 favorable
2. $500 favorable
3. $5,000 favorable
4. $5,010 favorable

4. HBs March labor quantity (efficiency) variance was

1. $30,000 unfavorable
2. $3,000 favorable
3. $3,000 unfavorable
4. $300 favorable

5. HBs March labor price (rate) variance was

1. $4,900 unfavorable
2. $4,900 favorable
3. $4,000 unfavorable
4. $4,000 favorable