Chapter 10 Quiz Saved Help Save & Exit Submit Majer Corporation makes a product with the following standard costs: 4 Direct materials Direct labor Variable overhead Standard Quantity or Hours 6.4 ounces 9.2 hours 0.2 hours Standard Price or Rate $ 2.00 per ounce $ 11.00 per hour $ 4.00 per hour Standard Cost Per Unit $12.80 $ 2.28 $ 0.80 The company reported the following results concerning this product in February Originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate 5,000 units 5,100 units 30, 100 ounces 1,930 hours 32,500 ounces $ 22.90 per ounce $ 32.40 per hour $ 4.10 per hour The company applles variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for February is 7 The company applies variable overhead on the basis of direct labor. hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for February is Multiple Choice $5.080 F $5.017 F $5.080 U $5.017