Flexer Company Ltd has set the following standards for the production of one unit of product. Normal production each month is 500 units.

Direct Material 8 lbs at $6.50 per lb $52

Direct Labour 4 hours at $7.00 per hour $28

During June, actual production amounted to 420 units. All direct material was purchased and used this month. The actual cost amounted to :

Direct Material 3,500 lbs $21,875

Direct labor: 1,720 hours 12,212

1) the direct material quantity variance for June production is calculated to be:

a. $35 U

b. $875 U

c. $910 U

d. $875 F

E. $3,250 F

2) The direct labor rate variance for June production is calculated to be:

a. $452 U

b. $172 U

c. $200 U

d. $168 U

e. $280 U

3) The direct labor efficiency variance for June production is calculated to be:

a. $452 U

b. $172 U

c. $280 U

D $284 F

E 452 F

Answer rating: 100% (QA)

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