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 price variance.Multiple choice question.$500 U$720 F$720 U$500 F

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 price variance.Multiple choice question.$500 U$720 U$500 F$720 F

ABC Company's production budget for October is based on 500 units. Standard unit cost for direct labor is $100 per unit ($20 per hour x 5 hours per unit). ABC's actual production in October = 525 units. The actual cost of direct labor = $56,700 ($18 per hour x 6 hours per unit).Calculate the direct labor rate variance for October:Direct labor rate variance = $.Use F or U to identify the variance as Favorable or Unfavorable: .

ABC Company's production budget for October is based on 500 units. Standard unit cost for raw materials is $130 per unit ($10 per pound x 13 pounds per unit). ABC's actual production in October = 525 units. The actual cost of materials used = $69,300 ($11 per pound x 12 pounds per unit).Calculate the raw materials usage variance for October:Raw materials usage variance = $.Use F or U to identify the variance as Favorable or Unfavorable: .

Following are ABC Company's production costs for January:Direct Materials $83,000Direct Labor $39,000Manufacturing Overhead $5,200Calculate the total cost that can be directly traced to specific products in the production process.

XYZ Company makes one product and has calculated the following amounts for direct materials: Actual cost: AQ x AP = $150,000; AQ x SP = $145,000; Standard cost: SQ x SP = $152,000. Compute the direct materials variance.Multiple choice question.$7,000 F$2,000 F$5,000 U$2,000 U