Landram Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 liters Direct labor 1.3 hours $7.00 per liter $11.00 per hour $3.00 per hour Variable overhead 1.3 hours The company produced 5,000 units in April using 10,310 liters of direct material and 2,290 direct labor hours. During the month, the company purchased 10,880 liters of direct material at $7.10.per liter. The actual direct labor rate was $11.70 per hour and the actual variable overhead rate was $3.00 per hour. The company applies variable overhead on the basis of direct labor hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is: a. $2,170 U b. $2,170 F c. $2,201 U d. $2,201 F

Landram Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 liters Direct labor 1.3 hours $7.00 per liter $11.00 per hour $3.00 per hour Variable overhead 1.3 hours The company produced 5,000 units in April using 10,310 liters of direct material and 2,290 direct labor hours. During the month, the company purchased 10,880 liters of direct material at $7.10.per liter. The actual direct labor rate was $11.70 per hour and the actual variable overhead rate was $3.00 per hour. The company applies variable overhead on the basis of direct labor hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is: a. $2,170 U b. $2,170 F c. $2,201 U d. $2,201 F

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 30P: Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following...

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