The Albright Company manufactures rubber parts for the automobile industry. The company had planned to produce 4,750 units according to the November budget. Its material standard specifies a cost of $2.70 per gallon and usage of 1.5 gallons per unit. Variable manufacturing overhead is $2 per direct labor hour. Total standard direct labor hours allowed in November budget is 2,375 hours for the month. Total direct labor costs are budgeted to be $19,000. During November, the company made 4,000 units and incurred the following costs:
Direct Materials Purchased : 8,100 gallons at $3.10 per gallon
Direct Materials used : 7,600 gallons
Direct Labor Used : 2,400 at $8.25 per hour
Actual Variable Overhead : $4,175
Question 1) Albright's material (or usage) variance for November was?
A) $3,240 Favorable B) $4,320 Favorable C) $3,240 Unfavorable D) $4,320 Unfavorable E) None of Above
Question 2) Albright's labor efficiency variance for November was?
A) $3,200 unfavorable B) $600 unfavorable C) $3,200 favorable D) $600 favorable E) $50 Favorable