Landram Corporation Makes a Product with the Following Standard Costs

question 119

Multiple Choice

Landram Corporation makes a product with the following standard costs: In March the company produced 4,700 units using 10,230 kilos of the direct material and 2,210 direct labor-hours. During the month, the company purchased 10,800 kilos of the direct material at a cost of $76,680. The actual direct labor cost was $38,233 and the actual variable overhead cost was $11,934.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

-The materials quantity variance for March is:

• A)$5,810 F
• B)$5,893 U
• C)$5,893 F
• D)$5,810 U

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