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

	Standard Quantity or Hours	Standard Price or Rate
Direct materials	4.0 pounds	$3.5 per pound
Direct labor	0.8 hours	$20.00 per hour
Variable overhead	0.8 hours	$9.00 per hour

In July the company produced 3,310 units using 13,240 pounds of the direct material and 2,768 direct labor-hours. During the month, the company purchased 14,000 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $54,960 and the actual variable overhead cost was $23,860.

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 labor rate variance for July is:

$400 F

$400 U

$2,000 U

$2,000 F

4. Pardoe, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product:

	Standard Quantity	Standard Price or Rate	Standard Cost
Direct materials	2.5 pounds	$5.00 per pound	$12.50
Direct labor	0.6 hours	$14 per hour	$8.4
Variable manufacturing overhead	0.6 hours	$3.25 per hour	$1.95

During March, the following activity was recorded by the company:

The company produced 4,600 units during the month.

A total of 15,000 pounds of material were purchased at a cost of $42,000.

There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,000 pounds of material remained in the warehouse.

During March, 2,960 direct labor-hours were worked at a rate of $14.50 per hour.

Variable manufacturing overhead costs during March totaled $5,972.

The direct materials purchases variance is computed when the materials are purchased.

The materials price variance for March is:

$33,000 U

$23,500 F

$23,500 U

$33,000 F

5.

Oddo Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	4.0 ounces	$7.60 per ounce	$30.40
Direct labor	0.6 hours	$21.00 per hour	$12.60
Variable overhead	0.6 hours	$7.00 per hour	$4.20

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

Originally budgeted output	4,460	units
Actual output	4,260	units
Raw materials used in production	17,410	ounces
Actual direct labor-hours	2,926	hours
Purchases of raw materials	19,150	ounces
Actual price of raw materials	$7.40	per ounce
Actual direct labor rate	$18.90	per hour
Actual variable overhead rate	$7.20	per hour

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 quantity variance for December is:

$2,812 U

$2,738 F

$2,812 F

$2,738 U

6. Oddo Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	3.0 ounces	$7.50 per ounce	$22.50
Direct labor	0.6 hours	$13.50 per hour	$8.10
Variable overhead	0.6 hours	$6.00 per hour	$3.60

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

Originally budgeted output	7,600	units
Actual output	7,400	units
Raw materials used in production	22,040	ounces
Actual direct labor-hours	4,640	hours
Purchases of raw materials	23,640	ounces
Actual price of raw materials	7.25	per ounce
Actual direct labor rate	12.10	per hour
Actual variable overhead rate	5.10	per hour

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 December is:

$6,710 U

$6,710 F

$5,910 F

$5,910 U

8. Midgley Corporation makes a product whose direct labor standards are 0.9 hours per unit and $27 per hour. In April the company produced 7,300 units using 6,070 direct labor-hours. The actual direct labor cost was $127,470.

The labor efficiency variance for April is:

$13,500 U

$13,500 F

$49,920 F

$49,920 U

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