Multiple Choice Question 128Waterwayhas a standard of 1.5 pounds of materials per unit, at $6 per pound. In producing 1500 units, Waterway purchased and used 2600 pounds of materials at a total cost of $15210. Waterway’s total material variance is$2100 U.$1575 F.$390 U.$1710 U.Multiple Choice Question 72Bonita Industriesproduces a product that requires 2.5 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.5 pounds and 0.1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.1 per pound, and receiving and handling costs are $0.1 per pound. The hourly wage rate is $12 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is 0.2 hours and 0.1 hours, respectively.The standard direct materials quantity per unit is2.5 pounds.3.0 pounds.2.6 pounds.3.1 pounds.
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