40. Cox Engineering performs cement core tests in its laboratory. The following standards have been set for each core test performed:

During March, the laboratory performed 2,000 core tests. On March 1 no direct materials (sand) were on hand. Variable manufacturing overhead is assigned to core tests on the basis of standard direct labor-hours. The following events occurred during March: 8,600 pounds of sand were purchased at a cost of $7,310. 7,200 pounds of sand were used for core tests. 840 actual direct labor-hours were worked at a cost of $8,610. Actual variable manufacturing overhead incurred was $3,200.

---

Part 1) The materials price variance for March is:

a. $281 favorable

b. $281 unfavorable

c. $860 unfavorable

d. $860 favorable

Part 2) The materials quantity variance for March is:

a. $1,950 favorable

b. $900 unfavorable

c. $900 favorable

d. $1,950 unfavorable

Standard Hours Standard Price or Quantity or Rate S0.75 per pound Direct matcrials.................................. 3 pounds Direct labor 0.4 hours $12 per hour 0.4 hours $9 per hour Variable manufacturing overhead