Class Exercise -Chapter 11 Name: The Ames Company has established standards for its direct material as follows: 3 pounds per unit @ $4 per pound Actual production figures for the past year are given below. Units produced 1,600 units Direct material used 5,000 pounds Direct material purchased $24,700 for 6,500 pounds 1. What is the material price variance? 2. What is the material quantity variance? Borden Enterprises uses standard costing. For the month of April, the company reported the following data: Standard labor to produce 1 unit: 2.5 hours @ $21 per hour During April, Borden actual production: 2,000 units of product. Actual hours worked: 5,400 hours Actual direct labor cost: $108,000 3. What is the labor rate variance for April? 4. What is the labor efficiency variance for April? The Borden Company has established standards as follows: Variable manufacturing overhead: 2.5 hours per unit @ $3 per hour During April, Borden produced 2,000 units of product. Actual hours worked: 5,400 hours Actual variable overhead cost: $15,390 5. What is the variable overhead rate variance? 6. What is the variable overhead efficiency variance? 7. Karl Corp. manufactures GPS devices and uses a standard cost system. The following information pertains to direct labor for model 209 for the month of June: Actual rate paid AR Standard rate SR Standard hours allowed for actual production SH Labor efficiency variance LEV $12 per hour $10.50 per hour 3,880 hours $735 favorable What were the actual hours Karl's employees worked during June