Question: For question 7 - 8 - 9 and 1 0 use this information The Baby Clothing Company makes a single product and uses standard costing.

For question 7-8-9 and 10 use this information
The Baby Clothing Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow:
Labour rate variance $7,500 favourable
Labour efficiency variance $12,000 favourable
Variable overhead efficiency variance $5,000 favourable
Number of units produced 10,000
Standard labour rate per direct labour hour $12
Standard variable overhead rate per direct labour hour $5
Actual labour hours used 15,000
Actual variable manufacturing overhead costs $78,290
7.- What was the variable overhead spending variance for May?
A) $ 1710 favourable
B) $ 1710 unfavourable
C) $ 3290 unfavourable
D) $ 3390 favourable
8.- What was the actual direct labour rate for May in dollars per hour?
A) $12,50
B) $12.00
C) $11.50
D) $11.75
9.- What was the total standard cost for direct labour for May?
A) $168000
B) $192000
C) $161000
D) $120000
10.- What was the total standard cost for variable overhead for May?
A) $50000
B) $80000
C) $56000
D) $40000

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