Question

8 Harrison Ine. has the following standands for the materials used for the production of their core product 8.3 lbs $19.15 per pound Standard quantity per unit of outpul Standard price The following data pertain to operations conceming the product for the last month: 9,000 bs $171,000 7,100 bs 700 units Actual materials purchased Actual cost of materials purchased Actual materials used in production Actual output What is the purchase price variance of the materials for the month? A. $1,065.00 Pavorable $1,350.00 $1,350.00 $1,065.00 в. Unfavorable с. Favorable D. E Unfavorable None of the above Taft Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of machine hours. The following data pertain to one month's operations: $68,000 $74,550 3,550 MHs 3,000 MHs Variable manufacturing overhead cost incurred: Total flexible budget variable overhead cost: Standard machine hours allowed for actual production: Actual machine hours incurred: The variable overhead rate variance is: $6,550 Favorable $6,550 Unfavorable $5,000 Favorable $5,000 Unfavorable 9 A. В. None of the above BCDE

Answer 1

1)	materials purchase price variance
	(171000 - 9000*19.15)
	1350	F
	answer option c
2)	variable overhead rate variance
	(Actual price - standard price)*actual hours
	(68000-74550)
	6550	F
	option A