Exercise 10 -1: Material Variances: [LO1] -Harmon Household Products, Inc. manufactures a number of consumer items for general household use.One of these products, a chopping board, requires an expensive hardwood.During a recent month, the company manufactured 4,000 chopping boards using 11,000 board feet of hardwood.The hardwood cost the company $18,700 -The company’s standards for one chopping board are 2.5 board feet of hardwood, at a cost of $1.80 per board foot. -Required: (1)According to the standards, what cost for wood should have been incurred to make 4,000 chopping blocks?

Alex owns a lumber yard. Sometimes they order 100 planks of oak wood, but sometimes they only orders 50. They spend $12 per plank of wood. These types of costs fluctuate depending how many planks of wood they need to order, what type of costs are these considered?Select answer from the options belowVariable costsMaterial overhead costsDirect material costsFixed costs.

Multiple Choice QuestionABC Company has set the following standards for one unit of product: Direct materials: 0.5 pounds @ $1.00 per pound; Direct labor: 1 hour @ $10.00 per hour. The company produced 35,000 units and had the following actual costs: Direct materials: 18,000 pounds at a total cost of $17,280; Direct labor: 36,000 hours at a total cost of $374,400. Compute the direct materials quantity variance.Multiple choice question.$720 U$500 U$500 F$720 F

ABC Company has set the following standards for one unit of product: Direct materials: 0.5 pounds @ $1.00 per pound; Direct labor: 1 hour @ $10.00 per hour. The company produced 35,000 units and had the following actual costs: Direct materials: 18,000 pounds at a total cost of $17,280; Direct labor: 36,000 hours at a total cost of $374,400. Compute the direct materials quantity variance.Multiple choice question.$500 F$500 U$720 F$720 U

Fletcher Company collected the following data regarding production of one of its products. Compute the total direct labor variance. Direct labor standard (2 hours @ $12.75/hour) $ 25.50 per finished unitActual direct labor hours 81,500 hoursActual finished units produced 40,000 unitsActual cost of direct labor $ 1,100,250  Multiple Choice$80,250 favorable.$61,125 favorable.$80,250 unfavorable.$61,125 unfavorable.$19,125 favorable.

Given the following information, calculate the materials price variance:Direct material purchased and used 30,000 kgCost of direct material $84,000Unfavourable direct materials usage variance $3,000Standard quantity of direct materials allowed for May production 29,000kg