Java Gourmet Coffee

Java Gourmet Coffee reports the following data for April 2010 where 200,000 pounds of roasted gourmet coffee beans were actually produced (note: standard costs do not allow for any wastage),

Actual:

	Direct Materials:
	Quantity of coffee beans:	210,000 pounds
	Cost per pound:	$0.60 per pound
	Direct Labor:
	Direct labor rate:	$19.00 per hour
	Labor hours used:	13,000 hours
	Variable Overhead:
	Actual costs:	$21,600

Standard:

	Direct Materials:
	Quantity of coffee beans:	200,000 pounds
	Cost per pound:	$0.50 per pound
	Direct Labor:
	Direct labor rate:	$20.00 per hour
	Labor hours to be used:	0.05 hours per pound
	Variable overhead:	$.10 per pound

22. Refer to Java Gourmet Coffee. Calculate the direct labor efficiency variance.

a.	$60,000 U
b.	$13,000 U
c.	$13,000 F
d.	$9,500 U

23. Refer to Java Gourmet Coffee. Calculate the variable manufacturing overhead variance.

a.	$1,000 U
b.	$2,000 U
c.	$1,000 F
d.	$2,000 F