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1.Morgan Manufacturing makes a product with the following standard costs: In January the company's...

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Accounting

1.Morgan Manufacturing makes a product with the following standard costs: image In January the company's budgeted production was 7,400 units but the actual production was 7,500 units. The company used 45,580 kilos of the direct material and 2,030 direct labor-hours to produce this output. During the month, the company purchased 48,500 kilos of the direct material at a cost of $53,350. The actual direct labor cost was $18,473 and the actual variable overhead cost was $7,714. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is:

Select one:

a. $4,875 F

b. $4,875 U

c. $4,850 U

d. $4,850 F

2.

The Lisa Company has the standard cost card of a particular product specifies that it requires 4.5 direct labor-hours at $12.80 per direct labor-hour. During March, 2,300 units of the product were produced and direct labor wages of $128,300 were incurred. A total of 11,700 direct labor-hours were worked. The direct labor variances for the month were: image

Select one:

a. Option A

b. Option B

c. Option C

d. Option D

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