Question: I don't remember our equation for this problem 1-6. The Litton Company has established standards as follows: (QUESTIONS 1 -6) Direct material 3 bs. @

I don't remember our equation for this problem 1-6.

The Litton Company has established standards as follows: (QUESTIONS 1 -6) Direct material 3 bs. @ $4/1b. = $12 per unit Direct labor 2 hrs. @ $8/hr. = $16 per unit Variable manuf. overhead 2 hrs.. @ $5/hr. = $10 per unit Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased. Units produced 600 Direct material used 2, 000 1bs. Direct material purchased (3, 000 1bs. ) $11, 400 Direct labor cost (1, 100 hrs.) $ 9, 240 Variable manuf. overhead cost incurred $ 5, 720 The company applies variable manufacturing overhead to products on the basis of direct labor hours. 1 The materials price variance is:" a. $400 U. $400 F. C. $600 F. d. $600 U. 2 . The materials quantity variance is: a. $800 U. b. $4, 000 U. C. $760 U. d. $760 F. 3 The labor rate variance is: a. $480 F. $480 U. C . $440 F. d. $440 .U. 4 The labor efficiency variance is: a. $800 F. b. $800 U. $840 F. d. $840 U. 5 The variable overhead spending variance is: a. $240 U. $220 U. $220 F. d. $240 F. 6 The variable overhead efficiency variance is: a. $520 F. b. $520 U. c. $500 U. d. $500 F

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