Reference no: EM132551038

The following data is give for the Walker Company:

Budgeted production 1,000 units

Actual production 980 units

Materials:

Standard price per lb $2.00

Standard pounds per completed unit 12

Actual pounds purchased and used in production 11,800

Actual price paid for materials $23,000

Labor:

Standard hourly labor rate $14 per pound

Standard hours allowed per completed unit 4.5

Actual labor hours worked 4,560

Actual total labor costs $62,928

Overhead:

Actual and budgeted fixed overhead $27,000

Standard variable overhead rate $3.50 per standard labor hour

Actual variable overhead costs $15,500

Overhead is applied on the standard labor hours.

Question 1: The direct labor rate variance is:

Option 1: 912 unfavorable

Option 2: 912 favorable

Option 3: 2,100 unfavorable

Option 4: 2,100 favorable

Question 2: The direct labor time variance is:

Option 1: 912 favorable

Option 2: 912 unfavorable

Option 3: 2,100 unfavorable

Option 4: 2,100 favorable