Apple Company manufactures wooden chairs and uses a standard cost system which sets predetermined overhead rates on the basis of direct labor-hours. At the beginning of the year, the company expected to manufacture and sell 1,800 units. The normal selling price of each chair is $200. The company's standard cost of production is given in the table below. Standard Cost (Based on 1,800 units) Direct materials, 3 metres at $25/metre $75/unit Direct labor, 2.5 hours at $28/hour $70/unit Variable manufacturing overhead cost $30/unit Budgeted fixed manufacturing overhead cost $45/unit During the year, the company produced and sold 1,600 units of product and incurred the following costs: Actual Cost Actual materials purchased 5,200 metres @ $24.5/metre Actual materials used in production 4,900 metres Actual direct labor cost incurred 4,200 hours @ $29/per hour Actual variable manufacturing overhead Actual fixed manufacturing overhead $54,200 $80,000 Total revenue $332,800

What are some possible reasons for a material price variance?

pls answer the questions

Here are the questions from my study material. Question included in the attached image.  _________________ What were the price and quantity variances for direct material, respectively? What were the rate and efficiency variances for direct labour, respectively?

1.What is the labor rate variance ( indicate the effect of each variance by selecting "f" for favorable, U for unfavorable, and None for no effect and round your final answer to the nearest whole number)  2. What is the variable overhead efficiency variance ? ( indicate the effect of each variance by selecting "f" for favorable, U for unfavorable, and None for no effect and round your final answer to the nearest whole number)  3. what is the variable overhead rate variance?

The following direct materials and direct labor data pertain to the operations of Sandhill Company for the month of August. Costs Actual labor rate Actual materials price Standard labor rate Standard materials price $13 $120 $12.50 $124 Quantities per hour per ton per hour per ton Actual hours incurred and used Actual quantity of materials purchased and used Standard hours used Standard quantity of materials used 4,900 hours 2,000 tons 4,960 hours 1,990 tons

The standard price for direct materials is used in the calculation of which variances ? Neither the price variance nor the quantity variance The quantity variance but not the price variance Both the price variance and the quantity variance The price variance but not the quantity variance

Which of the following is the correct formula for the direct materials quantity variance? O a. (Actual Quantity - Actual Price) - (Standard Quantity Standard Price) O b. (Actual Quantity- Standard Quantity) * Actual Price O c. (Actual Price - Standard Price) × Actual Quantity O d. (Actual Quantity - Standard Quantity) x Standard Price

The variable overhead efficiency variance is computed and interpreted. a) the same as; the same as b) the same as; differently than c) differently than; the same as d) differently than; differently than the direct-cost efficiency variance.

Gross profit volume variance is derived by A. combining sales and cost of sales variances. B. combining sales volume and cost volume variances. C. deducting cost price variance from gross profit variance. D. deducting sales price variance from gross profit variance.