Scotto Designs has the following standards to make one scarf: $\begin{array}{lrr} & {\text { Standard Quantity }} & \text { Standard Price } \\ \text { Direct materials }& 1.2 \text { yards per scarf } & \$ 4.70 \text { per yard } \\ \text { Direct labor } & 0.15 \text { hours per scarf } & \$ 11.00 \text { per hour } \end{array}$ The company used 985 yards of material in order to make 800 scarves in April.The company purchased 1,100 yards at $4.60 per yard.How much is the direct materials price variance?

A) $110 favorable B) $118 unfavorable C) $8 unfavorable D) $98.50 favorable A) $110 favorable B) $118 unfavorable C) $8 unfavorable D) $98.50 favorable

Steep, Inc.budgeted 6,000 cup holders for March.Each holder is sold for $12.Actual production for March was 6,300 cup holders.Standards and actual costs follow for March: $\begin{array}{|l|c|c|}\hline & \text { Standards } & \text { Actual } \\ \hline \text { Materials } & 1.1 \text { pounds } @ \$ 2.40 \text { a pound }&6,400 \text { pounds purchased for } \$ 15,040 \text {; }\\&& 6,450 \text { pounds used }\\\hline \text { Labor } & 0.10 \text { hours } @ \$ 14.00 \text { per hour } & 620 \text { hours } @ \$ 14.30 \text { per hour } \\ \hline \text { Variable overhead } & \$ 16,800 & \$ 18,400 \\\hline \text { Eixed overhead } & \$ 9,600 & \$ 10,300 \\ \hline \end{array}$ How much is the labor rate variance?

A) $140 favorable B) $186 unfavorable C) $46 unfavorable D) $280 favorable A) $140 favorable B) $186 unfavorable C) $46 unfavorable D) $280 favorable

RTC Supply Co.produces cleaning equipment for professional cleaners.At the start of the year, RTC estimated variable overhead costs to be $13 per unit and total fixed overhead costs at $300,000 based on a volume of 60,000 units.The detail for the overhead estimates follows: $\begin{array}{lrr}\text { Variable Overhead } &\text { Budget }(\alpha) 60,000 \text { units } & \text { Actual Costs }\\\hline \text { Indirect materials } & \$ 480,000 & \$ 469,500 \\ \text { Utilities } & 120,000 & 93,000 \\ \text { Maintenance } & 180,000 & 224,000 \\ \text { Total variable overhead }&780,000&786,500\\\\\text { Fixed Overhead }\\\hline \text { Supervisor salaries } & 125,000 & 127,000 \\ \text { Depreciation } & 150,000 & 145,000 \\ \text { Other fixed overhead } & 25,000 & 26,000 \\ \text { Total fixed overhead } &{300,000}&{298,000} \\\text { Total overhead costs } & \$ 1,080,000 & \$ 1,084,500 \end{array}$ Actual production for the year totaled 62,000 units.How much is the variable overhead flexible budget variance?

A) $4,500 unfavorable B) $10,000 favorable C) $21,500 favorable D) $19,500 favorable A) $4,500 unfavorable B) $10,000 favorable C) $21,500 favorable D) $19,500 favorable

Steep, Inc.budgeted 6,000 cup holders for March.Each holder is sold for $12.Manufacturing overhead is applied based on units produced.Actual production for March was 6,300 cup holders.Standards and actual costs follow for March: $\begin{array}{|l|c|c|}\hline & \text { Standards } & \text { Actual } \\ \hline \text { Materials } & 1.1 \text { pounds } @ \$ 2.40 \text { a pound }&6,400 \text { pounds purchased for } \$ 15,040 \text {; }\\&& 6,450 \text { pounds used }\\\hline \text { Labor } & 0.10 \text { hours } @ \$ 14.00 \text { per hour } & 620 \text { hours } @ \$ 14.30 \text { per hour } \\ \hline \text { Variable overhead } & \$ 16,800 & \$ 18,400 \\\hline \text { Eixed overhead } & \$ 9,600 & \$ 10,300 \\ \hline \end{array}$ How much is the overhead volume variance?

A) $1,460 unfavorable B) $480 favorable C) $2,300 unfavorable D) $980 favorable A) $1,460 unfavorable B) $480 favorable C) $2,300 unfavorable D) $980 favorable

Steep, Inc.budgeted 6,000 cup holders for March.Each holder is sold for $12.Actual production for March was 6,300 cup holders.Standards and actual costs follow for March: $\begin{array}{|l|c|c|}\hline & \text { Standards } & \text { Actual } \\ \hline \text { Materials } & 1.1 \text { pounds } @ \$ 2.40 \text { a pound }&6,400 \text { pounds purchased for } \$ 15,040 \text {; }\\&& 6,450 \text { pounds used }\\\hline \text { Labor } & 0.10 \text { hours } @ \$ 14.00 \text { per hour } & 620 \text { hours } @ \$ 14.30 \text { per hour } \\ \hline \text { Variable overhead } & \$ 16,800 & \$ 18,400 \\\hline \text { Eixed overhead } & \$ 9,600 & \$ 10,300 \\ \hline \end{array}$ How much is the labor efficiency variance?

A) $140 favorable B) $186 unfavorable C) $46 unfavorable D) $280 favorable A) $140 favorable B) $186 unfavorable C) $46 unfavorable D) $280 favorable

Eminem, Inc.manufactures music CDs.At the start of 2017, Eminem planned to produce 108,000 CDs for which the standard cost for each CD is: $\begin{array}{lr} \text { Plastic (0.25 pounds at } \$ 6.00 \text { per pound) } & \$ 1.50 \\ \text { Labor }(0.10 \text { hour at } \$ 12.00 \text { per hour) } & 1.20 \\ \text { Overhead ( } \$ 0.80 \text { fixed and } \$ 0.60 \text { variable) } & \underline{1.40} \\ \text { Total } & \$ \underline{\underline{4.10}} \end{array}$ Overhead is allocated based on the number of units produced.Eminem isolates material purchase variances at the point of purchase.The following information summarizes Eminem's results for 2017: $\begin{array}{lr} \text { Actual production } & 110,000 \text { CDs } \\ \text { Actual variable overhead } & \$ 65,000 \\ \text { Actual fixed overhead } & \$ 83,000 \end{array}$ How much is under or overapplied overhead for 2017?

A) $6,000 overapplied B) $4,400 overapplied C) $1,600 overapplied D) $3,200 underapplied A) $6,000 overapplied B) $4,400 overapplied C) $1,600 overapplied D) $3,200 underapplied