Task: Stanton Company use the following standards in the production of its only product:
Direct Materials: 18 Pounds @ $25 per pound
Direct Labor: 6 Hours @ $18 Per Hour
During March, company records showed the following:
Materials purchased: 12,000 Pounds @ $264,000
Materials used: 15,000 Pounds
Direct Labor Hours: 4,700 Hours @ $21 Per Hour
Units Produced: 800 Units
Q1. The materials price variance is:
a $36,000 unfavorable
b $36,000 favorable
c $15,000 unfavorable
d $15,000 favorable
Q2. The material quantity variance is:
a $36,000 unfavorable
b $36,000 favorable
c $15,000 unfavorable
d $15,000 favorable
Q3. The direct labor rate variance is:
a $1,800 unfavorable
b $1,800 favorable
c $14,100 unfavorable
d $14,100 favorable
Q4. The direct labor efficiency variance is:
a $1,800 unfavorable
b $1,800 favorable
c $14,100 unfavorable
d $14,100 favorable