Turrubiates Corporation makes a product that uses a material with the following standards:

Standard quantity		7.7	liters per unit
Standard price	$	2.20	per liter
Standard cost	$	16.94	per unit

The company budgeted for production of 3,500 units in April, but actual production was 3,600 units. The company used 28,400 liters of direct material to produce this output. The company purchased 19,800 liters of the direct material at $2.3 per liter.

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

The materials quantity variance for April is:

Garrison 16e Rechecks 2017-11-18

Multiple Choice

$1,564 U

$1,496 U

$1,564 F

$1,496 F

.

he following labor standards have been established for a particular product:

Standard labor-hours per unit of output		8.9	hours
Standard labor rate	$	12.70	per hour

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

Actual hours worked		6,700	hours
Actual total labor cost	$	82,410
Actual output		1,000	units

What is the labor efficiency variance for the month?

Multiple Choice

$30,620 F

$30,620 U

$27,060 F

$27,940 F