599.

A favourable variable overhead efficiency variance indicates that:

A.

standard hours exceed actual hours

B.

standard rate times standard hours exceeds actual rate times actual hours

C.

actual hours exceed standard hours

D.

actual rate exceeds standard rate

620.

BDC Company manufactures a single product, A1. The standard cost specification sheet shows the following standards for one unit of A1:

3kg of material X @ $15 per kg		$45
2 hours of direct labour @ $19 per direct labour hour		$38
A total of 6000 A1 units were produced during June. Actual costs incurred during June were: 20,000 kg of material X were purchased @ 13.5 per kg. 22,000 kg of material X were used. 18,000 direct labour hours were worked at an average wage rate of $15 per hour. Calculate the direct material quantity variance.

A.

$30,000 (U)

B.

$60,000 (F)

C.

$30,000 (F)

D.

$60,000 (U)