Walthaus Corporation's standard cost sheet is as follows:

Direct material	4 feet at $5.00 per foot
Direct labor	3 hours at $10.00 per hour
Variable overhead	3 hours at $2.00 per hour
Fixed overhead	3 hours at $1.00 per hour

Additional information:

• Actual results: purchased 30,000 feet of material at $5.25 per foot (there were no beginning or ending material inventories); direct labor cost incurred was 26,000 hours at $9.75 per hour; actual variable overhead incurred, $50,000; and actual fixed overhead incurred $43,000.
• Overhead is applied to work-in-process on the basis of direct labor hours.
• The company produced 8,000 units of product during the period.
• The number of estimated hours for computing the fixed overhead application rate totaled 45,000 hours.

What are the material price and efficiency variances?

rev: 12_05_2018_QC_CS-150483

Multiple Choice

• $7,500 U; $10,000 F.

• $6,200 F; $8,000 U.

• None of these.

• $7,500 F; $10,000 F.