Reference: 11-13
the Upton Company Employs a Standard Costing System

Reference: 11-13
The Upton Company employs a standard costing system in which variable overhead is assigned to production on the basis of direct labour hours. Data for the month of February include the following:
Variable manufacturing overhead cost incurred: $48,700
Total variable overhead variance: $300 F
Standard hours allowed for actual production: 7,000
Actual direct labour hours worked: 6,840
-During March, Younger Company's direct material costs for product T were as follows: $$\begin{array} { | l | l | l | } \hline \text { Actual unit purchase price } & \$ 6.50 & \text { per metre } \\\hline \text { Standard quantity allowed for actual production } & 2,100 & \text { metres } \\\hline \text { Quantity purchased and used for actual production } & 2,000 & \text { metres } \\\hline \text { Standard unit price } & \$ 6.00 & \text { per metre } \\\hline\end{array}$$ Younger's material quantity variance for March was?

A) $650 favourable.
B) $600 favourable.
C) $600 unfavourable.
D) $650 unfavourable.

Correct Answer:

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