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8. Cox Company's direct material costs for the month of January were as follows:
Actual quantity purchased 18,000 kilograms
Actual unit purchase price $ 3.60 per kilogram
Materials price variance – unfavorable (based on purchases) $ 3,600
Standard quantity allowed for actual production 16,000 kilograms
Actual quantity used 15,000 kilograms
For January there was a favorable direct material quantity variance of
A. $3,360. B. $3,375. C. $3,400. D. $3,800.
28. Web Company uses a standard cost system in which manufacturing overhead is applied to
units of product on the basis of machine hours. During February, the company used a
denominator activity of 80,000 machine hours in computing its predetermined overhead rate.
However, only 75,000 standard machine hours were allowed for the month's actual
production. If the fixed overhead volume variance for February was $6,400 unfavorable, then
the total budgeted fixed overhead cost for the month was:
A. $96,000. B. $102,400. C. $100,000. D. $98,600.