Question 16

| Q14-Q18 are based on this case: Martin Co. gathered the following actual results for the current month: Actual Units produced 3,200 Direct materials purchased and used (6,100 lbs.) $27,450 Direct labor cost (4,300 hours actual) $30,100 Overhead costs incurred, in total.$40,650 [= $11,750 Variable and $28,900 Fixed overhead incurred.] Machine hours of 310 hours actual used. The Static original budgeted production was 4,000 units. The Input standards were: Std Quantity x Std Price per input =Std Cost per Output U Direct materials 2 lbs./Output unit x $4.25/lb. Direct labor 1.5 hrs./Output unit x $7.50/hr. Variable manufacturing overhead 0.1 machine hr x $40 per hr = $4 per unit Fixed mfg. overhead [Budget $28,000] 0.1 machine hr x $70 per hr = $7 per unit Q14. What is the direct materials quantity variance? A. $1525U B. 1500F C. 4250 D. 1950U E. 1275F. Q15. What is the direct labor rate variance? A. $1500F B. 3650F C. 1525U D. 2150F E. 2150F. Q16. What is the fixed overhead volume variance? A. $7000U B. 900U C. 7900U [10% of test] D. 1000U E. 5600U