What type of variance results when the actual fixed overhead costs incurred are greater than the budgeted fixed overhead costs?

	Unfavorable fixed overhead budget variance
	Favorable fixed overhead volume variance
	Unfavorable fixed overhead volume variance
	Favorable fixed overhead budget variance

Question

Belle Auto Detailing reported the following results for the past week:

Actual number of cars detailed	250
Actual direct labor hours used	625
Actual total direct labor cost	$6,500
Budgeted number of cars to be detailed	300
Standard direct labor cost per hour	$10
Standard direct labor per car	1.5

What is Belle's direct labor rate variance?

	$250 unfavorable
	$150 unfavorable
	$150 favorable
	$250 favorable

Question

Razzle Baking Company gathered the following actual results for the current month:

Actual amounts

Units produced	5,500
Direct materials purchased and used (7,500 lbs.)	$25,000

Budgeted production and standard costs

Budgeted production	5,000 units
Direct materials	1.5 lbs./unit at $3/lb.

What is the direct materials price variance?

	$2,500 favorable
	$2,500 unfavorable
	$2,750 unfavorable
	$2,750 favorable