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Majer Corporation makes a product with the following standard costs:

Standard Quantity or HoursStandard Price or RateStandard Cost Per UnitDirect materials6.5ounces$ 2.00per ounce$ 13.00Direct labor0.5hours$ 15.00per hour$ 7.50Variable overhead0.5hours$ 2.00per hour$ 1.00

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

Originally budgeted output4,300unitsActual output5,600unitsRaw materials used in production30,800ouncesActual direct labor-hours1,780hoursPurchases of raw materials34,700ouncesActual price of raw materials$ 127.10per ounceActual direct labor rate$ 117.60per hourActual variable overhead rate$ 6.40per 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 February is:

Multiple Choice

$11,200 F

$11,137 F

$11,200 U

$11,137 U

Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or HoursStandard Price or RateStandard Cost Per UnitDirect materials6.6ounces$ 3.00per ounce$ 19.80Direct labor0.3hours$ 10.00per hour$ 3.00Variable overhead0.3hours$ 5.00per hour$ 1.50

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

Originally budgeted output2,000unitsActual output2,500unitsRaw materials used in production19,000ouncesPurchases of raw materials19,500ouncesActual direct labor-hours510hoursActual cost of raw materials purchases$ 40,000 Actual direct labor cost$ 12,000 Actual variable overhead cost$ 3,000

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 June is:

Multiple Choice

$337 F

$6,900 F

$337 U

$6,900 U

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