Reference no: EM13507274

1. Landram Corporation makes a product with the following standard costs:

Inputs	Standard Quantity   or Hours	Standard Price or   Rate
Direct materials	2.0 kilos	$7.00 per kilo
Direct labor	1.6 hours	$14.00 per hour
Variable overhead	1.6 hours	$2.00 per hour

In March the company produced 4,600 units using 10,220 kilos of the direct material and 2,200 direct labor-hours. During the month, the company purchased 10,790 kilos of the direct material at a cost of $76,670. The actual direct labor cost was $38,246 and the actual variable overhead cost was $11,947.

The company applies variable overhead on the basis of direct labor-hours. The direct materials price variance is computed when the materials are purchased.

The materials quantity variance for March is:
A. $7,140 U
B. $7,248 U
C. $7,140 F
D. $7,248 F

2. Hurren Corporation makes a product with the following standard costs:

Inputs	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	4.8 grams	$7.00 per gram	$33.60
Direct labor	0.8 hours	$13.00 per hour	$10.40
Variable overhead	0.8 hours	$8.00 per hour	$6.40

The company reported the following results concerning this product in June.

Originally budgeted output	6,200	units
Actual output	6,100	units
Raw materials used in production	28,420	grams
Actual direct labor-hours	4,800	hours
Purchases of raw materials	32,200	grams
Actual price of raw materials purchased	$7.10	per gram
Actual direct labor rate	$13.90	per hour
Actual variable overhead rate	$7.70	per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials price variance is computed when the materials are purchased.

The labor rate variance for June is: (Round your intermediate calculations to 2 decimal places.)
A. $4,392 F
B. $4,320 F
C. $4,392 U
D. $4,320 U

3. Landram Corporation makes a product with the following standard costs:

Inputs	Standard Quantity or Hours	Standard Price or   Rate
Direct materials	2.0 kilos	$7.00 per kilo
Direct labor	1.0 hours	$14.00 per hour
Variable overhead	1.0 hours	$6.00 per hour

In March the company produced 4,700 units using 10,280 kilos of the direct material and 2,260 direct labor-hours. During the month, the company purchased 10,850 kilos of the direct material at a cost of $76,730. The actual direct labor cost was $38,238 and the actual variable overhead cost was $11,939.
The company applies variable overhead on the basis of direct labor-hours. The direct materials price variance is computed when the materials are purchased.

The materials price variance for March is: (Do not round intermediate calculations.)
A. $640 U
B. $780 F
C. $780 U
D. $640 F