Question
Use the following to answer questions 60-65: Pardoe, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of direct
Use the following to answer questions 60-65: Pardoe, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of direct labor hours. The company uses a standard cost system and has established the following standards for one unit of product: Standard Standard Price Standard Quantity or Rate Cost Direct materials 1.5 pounds $3.00 per pound $4.50 Direct labor 0.6 hours $6.00 per hour $3.60 Variable manufacturing overhead 0.6 hours $1.25 per hour $0.75 During March, the following activity was recorded by the company: %u2022 The company produced 3,000 units during the month. %u2022 A total of 8,000 pounds of material were purchased at a cost of $23,000. %u2022 There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,000 pounds of material remained in the warehouse. %u2022 During March, 1600 direct labor hours were worked at a rate of $6.50 per hour. %u2022 Variable manufacturing overhead costs during March totaled $1,800. 60. The materials price variance for March is: A) $1,000 F B) $1,000 U C) $750 F D) $750 U 61. The materials quantity variance for March is: A) $4,500 F B) $10,500 F C) $10,500 U D) $4,500 U 62. The labor rate variance for March is: A) $480 U B) $800 U C) $480 F D) $800 F 63. The labor efficiency variance for March is: A) $5,040 U B) $1,200 U C) $1,200 F D) $5,040 F 64. The variable overhead spending variance for March is: A) $200 U B) $600 U C) $600 F D) $200 F 65. The variable overhead efficiency variance for March is: A) $1,050 F B) $1,050 U C) $250 F D) $250 U
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