ABC Company has set the following standards for the production of one case of Zesty Pretzels:
Usage Cost
Direct Materials .9 pounds $5 per pound
Direct Labor .4 hours $15 per hour
Variable Overhead .4 hours $5 per hour
Actual information recorded by ABC Company for the month of March is below:
Purchased 7,000 pounds at a cost of $31,500
Used 5,616 pounds to make 5,200 good units
Paid $32,214 for 2,184 hours of labor.
Actual variable OH costs were $11,600.
The materials price variance for March is:
a. $3,500 unfavorable c. $3,420 unfavorable
b. $3,500 favorable d. $3,420 favorable
The material quantity variance for March is:
a. $11,600 unfavorable c. $4,680 unfavorable
b. $11,600 favorable d. $4,680 favorable
The labor rate variance for March is:
a. $546 unfavorable c. $1,014 unfavorable
b. $546 favorable d. $1,014 favorable
The labor efficiency variance for March is:
a. $1,560 unfavorable c. $9,240 unfavorable
b. $1,560 favorable d. $9,240 favorable