The Litton Company has established standards as follows: Direct material 3 lbs. @ $4/1b. = $12 per unit Direct labor 2 hrs. @ $8/hr. = $16 per unit Variable manuf. Overhead 2 hrs. @ $5/hr. = $10 per unit Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased. Units produced 600 Direct material used 2,000 lbs. Direct material purchased (3,000 lbs.) $11,400 Direct labor cost (1,100 hrs.) $ 9,240 Variable manuf, overhead cost incurred $5,720 The company applies variable manufacturing overhead to products on the basis of direct labor hours. Question 25 (5 points) The materials price variance is: 1) $400 U. 2) $400 F 3) $600 F. 4) $600 U. nda Thompson: Attempt 1 Question 26 (5 points) The materials quantity variance is: 1) $800 U. 2) $4,000 U. 3) $750 U. 4) $760 F. Question 27 (5 points) The labor rate variance is: 1) $480 F. 2) $480 U. 3) $440 F. 4) $440 U