1. The per-unit standards for direct materials arc 2 pounds at $4 per pound. Last month, 11,200...
Question:
1. The per-unit standards for direct materials arc 2 pounds at $4 per pound. Last month, 11,200 pounds of direct materials that actually cost $42,400 were used to produce 6,000 units of product. The direct materials quantity variance for last month was
A) $3,200 Favorable
B) $2,400 Favorable
C) $3,200 Unfavorable
D) $5,600 Unfavorable
2. The standard rate of pay is $10 per direct labor hour. If the actual direct labor payroll was $39,200 for 4,000 direct labor hours worked, the direct labor price (rate) variance is
A) $800 Unfavorable
B) $800 Favorable
C) $1,000 Unfavorable
D) $1,000 Favorable
3. The Royal Business Professor Mullen Co. manufactures a product with a standard direct labor cost of two hours at $12.00 per hour. During July, 2,000 units were produced using 4,200 hours at $12.20 per hour. The labor quantity variance was
A) $2,440 F
B) $2,400 U
C) $1,640 US
D) $2,440 U
4. Old and Feeble Professor Mullen Co. manufactures a product with a standard direct labor cost of two hours at $12.00 per hour. During July, 2,000 units were produced using 4,200 hours at $12.20 per hour. The labor price variance was
A) $840 U
B) $3,240 U
C) $3,240 F
D) $2,400 U
5. A company developed the following per unit materials standards for its product: 3 pounds of direct materials at $4 per pound. If 12,000 units of product were produced last month and 37,500 pounds of direct materials were used, the direct materials quantity variance was
A) $3,600 Favorable
B) $6,000 Unfavorable
C) $3,600 Unfavorable
D) $6,000 Favorable
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac