The following information pertains to questions #7 #8 and #9 Morse Company manufactures ice cabinets. The standard cost card for their main product follows:
Morse company maufactures ice cabinets. The standard cost card for their main product contains the following information.
Direct Materials 10 lbs @ $5 per lb. = $50; Direct Labor is 2 hours @ $15 per hour = $30;
Variable Overhead is applied at 2 hours @ $3 per Direct Labor hour = $6; Fixed overhead is applied at 2 hours @ $10 per Direct Labor hour = $20:
Total cost per unit planned is $106.
(7)For the week the following data was recorded for the production of 190 ice cabinets. The payroll department recorded 400 man-hours at
$14.50 per hour.
The stores department reported the use of 2000 lbs of material that cost $9700.
The direct materials purchase price variance for the week is:
$200U
$300F
$400U
$500U
None of the above answers.
(8)
The direct materials usage variance for the week is:
$200U
$300F
$400U
$500U
None of the above answers.
(9)The direct labor rate variance for the week is:
$200U
$300F
$400U
$500U
None of the above answers are correct.
PLEASE GUYS give some explanation to your answers.