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French Company produces a single product. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The standard costs for one unit of product are as follows: Direct material: 2 pounds at S1.50 per pound.. Direct labor: 50 hours at $30.00 per hour. Variable manufacturing overhead: 5 hours at $12.00 per $ 3.00 15.00 hour... 6.00 Total standard variable cost per unit $24.00 During June, 2,000 units were produced. The actual costs associated with June's operations were as follows: Materials purchased and used: 4,200 pounds at $1.40 per pound $ 5,880 Direct labor: 1,100 hours at $29.00 per hour S31,900 Variable manufacturing overhead costs incurred $10,800 Questions 1-6 relate to the ahove data 1) The direct materials price variance is: A) $ 420 favorable B) $ 300 favorable C) S 520 unfavorable D) S 260 favorable E) None of the above 2) The direct material quantity variance is: A) S 250 unfavorable B) $ 300 unfavorable C) S 500 favorable D) S 420 favorable E) None of the above 3) The direct labor rate variance is: A) S 300 favorable B) S 1,500 unfavorable C)S 1,100 favorable D)$2,000 favorable E) None of the above 4) The direct labor efficiency variance is: A) $2,000 favorable B) $ 3,000 unfavorable C) $1,500 favorable D) $ 2,000 unfavorable E) None of the above 5) The variable manufacturing overhead spending variance is: A) $ 3,200 favorable B) $ 2,100 unfavorable C) $ 1,850 favorable D) $ 2,400 favorable E) None of the above 6) The variable manufacturing overhead efficiency variance is: A) $ 1,200 unfavorable B) $ 1,800 favorable C) S 900 unfavorable D) $ 1,500 favorable E) None of the above

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