Question
The Thompson Company uses standard costing and has established the following direct material and direct labor standards for each unit of Lept. Direct materials: 2
The Thompson Company uses standard costing and has established the following direct material and direct labor standards for each unit of Lept. Direct materials: 2 gallons at $4 per gallon Direct labor: 0.5 hours at $8 per hour During September, the company made 6,000 Lepts and incurred the following costs: Direct materials purchased: 13,400 gallons at $4.10 per gallon Direct materials used: 12,600 gallons Direct labor used: 2,800 hours at $7.65 per hour
What is the variable overhead rate variance for the month?
A. $5,885 F B. $1,220 F C. $5,885 U D. $1,220 U
The labor efficiency variance for September was:
A. $1,600 favorable B. $22,400 favorable C. $33,600 favorable D. $3,200 favorable
The materials quantity variance for September was:
A. $5,740 unfavorable B. $5,600 unfavorable C. $2,460 unfavorable D. $2,400 unfavorable
The labor rate variance for September was:
A. $980 unfavorable B. $280 favorable C. $1,530 unfavorable D. $980 favorable
The materials price variance for September was:
A. $1,340 unfavorable B. $1,260 favorable C. $1,340 favorable D. $1,260 unfavorable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started