3a: Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost. Jackson has established the following standards for one unit of product:

	Standard Quantity		Standard Price or Rate		Standard Cost
Direct materials	4	pounds	$4.70	per pound	$18.80
Direct labor	2.60	hours	$7.00	per hour	$18.20

During May, Jackson purchased 107,250 pounds of direct material at a total cost of $525,525. The total factory wages for May were $465,100, 90 percent of which were for direct labor. Jackson manufactured 23,000 units of product during May using 88,600 pounds of direct material and 60,300 direct labor-hours. Question: The labor rate variance for May is:

A:$3,510 Favorable

B:$2,310 Unfavorable

C:$3,510 Unfavorable

D:$1,110 Favorable

3b:

Gilder Corporation makes a product with the following standard costs:

	Standard Quantity or Hours		Standard Price or Rate			Standard Cost Per Unit
Direct materials	7.90	grams	$	10.00	per gram	$	79.00
Direct labor	0.15	hours	$	28.00	per hour	$	4.20
Variable overhead	0.15	hours	$	8.00	per hour	$	1.20

The company reported the following results concerning this product in June:

Originally budgeted output	4,800	units
Actual output	5,040	units
Raw materials used in production	37,492	grams
Purchases of raw materials	41,792	grams
Actual direct labor-hours	670	hours
Actual cost of raw materials purchases	$392,840
Actual direct labor cost	$18,164
Actual variable overhead cost	$3,028

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. Question: The materials quantity variance for June is:

A:$22,980 F

B:$23,240 F

C:$23,240 U

D:$240 U

3c:

Gilder Corporation makes a product with the following standard costs:

	Standard Quantity or Hours		Standard Price or Rate				Standard Cost Per Unit
Direct materials	6.10	grams	$5.00	per gram			$30.50
Direct labor	0.20	hours	$11.00	per hour			$ 2.20
Variable overhead	0.20	hours	$ 4.00	per hour			$ 0.80

The company reported the following results concerning this product in June:

Originally budgeted output	3,100	units
Actual output	3,180	units
Raw materials used in production	18,508	grams
Purchases of raw materials	21,108	grams
Actual direct labor-hours	560	hours
Actual cost of raw materials purchases	$99,210
Actual direct labor cost	$5,757
Actual variable overhead cost	$1,594

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

Question: The materials price variance for June is:

A:$6,330 F

B:$6,330 U

C:$6,100 U

D:$6,100 F