1) The following material standards have been established for a particular product: Standard quantity per unit of output... 6.8 Meters Standard Price...$14.40 per Meter
The following data pertain to operations concerning teh product for the last month:
- Actual materials purchased... 4,400 meters
- Actual cost of materials purchased... $60,500
- Actual materials used in production...3,800 meters
- Actual output...400 units
Q: What is the materials price variance for the month?
A:$14,850 U
B:$8,250 U
C:$8,640 U
D:$2,860 F
2) The following labor standards have been established for a particular product:
- Standard labor-hours per unit of output... 5.0 hours
- Standard labor rate... $19.85 per hour
The following data pertain to operations concerning the product for the last month:
- Actual hours worked... 7,300 hours
- Actual total hours cost...$148,190
- Actual output... $1,400 units
Q:What is the labor efficiency variance for the month?
A:$5955 U
B:$9240 U
C:$9240 F
D:$6090 U