1.

Dirickson Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.

Inputs	Standard Quantity or Hours per Unit of Output		Standard Price or Rate
Direct materials	7.6	ounces	$ 9.40	per ounce
Direct labor	0.10	hours	$ 18.00	per hour
Variable manufacturing overhead	0.10	hours	$ 5.30	per hour

The company has reported the following actual results for the product for July:

Actual output	7,600	units
Raw materials purchased	63,000	ounces
Actual cost of raw materials purchased	$ 541,800
Raw materials used in production	57,750	ounces
Actual direct labor-hours	820	hours
Actual direct labor cost	$ 16,072
Actual variable overhead cost	$ 4,592

The raw materials quantity variance for the month is closest to:

Multiple Choice

• $86 U

• $86 F

• $94 U

• $94 F

2.

Lacrue Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.

Inputs	Standard Quantity or Hours per Unit of Output		Standard Price or Rate
Direct materials	6.3	ounces	$ 5.50	per ounce
Direct labor	0.40	hours	$ 22.00	per hour
Variable manufacturing overhead	0.40	hours	$ 3.80	per hour

The actual output for the period was 3,700 units.

The standard hours allowed for the actual output is closest to:

Multiple Choice

• 1,480 hours

• 1,580 hours

• 1,520 hours

• 1,538 hours

3.

Dirickson Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.

Inputs	Standard Quantity or Hours per Unit of Output		Standard Price or Rate
Direct materials	7.6	ounces	$ 9.40	per ounce
Direct labor	0.10	hours	$ 18.00	per hour
Variable manufacturing overhead	0.10	hours	$ 5.30	per hour

The company has reported the following actual results for the product for July:

Actual output	7,600	units
Raw materials purchased	63,000	ounces
Actual cost of raw materials purchased	$ 541,800
Raw materials used in production	57,750	ounces
Actual direct labor-hours	820	hours
Actual direct labor cost	$ 16,072
Actual variable overhead cost	$ 4,592

The labor efficiency variance for the month is closest to:

Multiple Choice

• $1,080 F

• $1,176 F

• $1,080 U

• $1,176 U