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Information on Rex Co.'s direct material costs for May follows:

Information on Rex Co.'s direct material costs for May follows:

Actual quantity of direct materials purchased and used = 30,000 pounds
Actual cost of direct materials = $84,000
Unfavorable direct materials quantity variance = $3,000
Standard quantity of direct materials allowed for May production = 29,000 pounds

For the month of May, what was Rex's direct materials price variance?
$2,800 favorable
$2,800 unfavorable
$6,000 unfavorable
$6,000 favorable


The budget for May called for production of 9,000 units. Actual output for the month was 8,500 units with total direct materials cost of $127,500 and total direct labor cost of $77,775. The direct labor standards call for 45 minutes of direct labor per unit at a cost of $12 per direct labor-hour. The direct materials standards call for one pound of direct materials per unit at a cost of $15 per pound. The actual direct labor-hours were 6,375. Variance analysis of the performance for the month of May would indicate:
$7,500 favorable materials quantity variance.
$1,275 favorable direct labor efficiency variance.
$1,275 unfavorable direct labor efficiency variance.
$1,275 unfavorable direct labor rate variance.

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