# Exercise 4 French Co. makes berets out of a special dyed wool fabric. During the month, the company

Exercise 4 French Co. makes berets out of a special dyed wool fabric. During the month, the company made 8000 berets using 8800 decimeters of fabric. The fabric cost 232320 Euros. According to company standards, each beret requires 1.2 decimeters of fabric at a cost of 24 Euros per decimeter What is the actual price of fabric per decimeter? х What is the standard quantity given the number of berets produced? X What is the amount of material pricévariance? X Is the MPV favorable or unfavorable? |х What is the amount of material quantity (efficiency) variance? X Is the MQV favorable or unfavorable? Exercise 5 Lunch Co. makes sandwiches for convenience stores. Last month, it made 17500 sandwiches using 700 direct labor hours. It paid its employees a total of $5670. According to company standards, employees should make 20 sandwiches per hour and be paid $9 per hour What is the actual labor rate? What is the standard hours allowed for the number of sandwiches made? X What is the amount of labor rate (price) variance? X Is the LRV favorable or unfavorable? X What is the amount of labor efficiency (quantity) variance? X Is the LEV favorable or unfavorable? |х Exercise 6 Lunch Co. makes sandwiches for convenience stores. Last month, it made 17500 sandwiches using 700 direct labor hours. It incurred variable overhead costs of $7700. According to company standards, employees should make 20 sandwiches per hour and the variable overhead rate is $10 per direct labor dollar. What is the actual variable overhead rate? X What is the standard hours allowed for the number of sandwiches made? X What is the amount of variable overhead rate variance? X 4 Is the variable overhead rate variance favorable or unfavorable? 6 What is the amount of variable overhead efficiency variance? 8 Is the variable overhead efficiency variance favorable or unfavorable?