Variance Company produces Chemical Y. It budgeted to produce 10,000 gallons of Chemical Y in fiscal year 2006. It actually produced 11,000 gallons. The production process for Chemical Y has two principal ingredients, Mystery Material M and labor. To produce 1 gallon of Chemical Y under budget requires 10 gallons of Mystery Material M @ $3/gallon and .5 labor hours @$20/labor hour. During 2006, it spent $346,500 to purchase 99,000 gallons of Mystery Material M that Variance Company used in production. Its actual total labor costs were $115,000 and it used 5,000 hours of labor

What is the labor volume variance?

A) $15,000 B) $10,000 C) $5,000 D) $500

5. What is the labor efficiency variance?

A) $15,000 B) $10,000 C) $5,000 D) $500

What is the flexible budget variance for mystery material M for the year 2006?

A) $16,500 B) $30,000 C) $10,000 D) $46,500

8. What is the price variance for mystery material M for the year 2006?

A) $33,000 B) $30,000 C) $49,500 D) $50,000