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Cox Engineering Performs Cement Core Tests in Its Laboratory

question 129

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Cox Engineering performs cement core tests in its laboratory. The following standards have been set for each core test performed: Cox Engineering performs cement core tests in its laboratory. The following standards have been set for each core test performed:   During March, the laboratory performed 2,000 core tests. On March 1 no direct materials (sand)  were on hand. Variable manufacturing overhead is assigned to core tests on the basis of standard direct labor-hours. The following events occurred during March:  • 8,600 pounds of sand were purchased at a cost of $7,310. • 7,200 pounds of sand were used for core tests. • 840 actual direct labor-hours were worked at a cost of $8,610. • Actual variable manufacturing overhead incurred was $3,200. -The labor rate variance for March is: A) $4,578 unfavorable B) $1,470 unfavorable C) $4,578 favorable D) $1,470 favorable During March, the laboratory performed 2,000 core tests. On March 1 no direct materials (sand) were on hand. Variable manufacturing overhead is assigned to core tests on the basis of standard direct labor-hours. The following events occurred during March:

• 8,600 pounds of sand were purchased at a cost of $7,310.
• 7,200 pounds of sand were used for core tests.
• 840 actual direct labor-hours were worked at a cost of $8,610.
• Actual variable manufacturing overhead incurred was $3,200.
-The labor rate variance for March is:

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