Question
1.) A company has established 4 pounds of Material J at $3 per pound as the standard for the material in its Product Z. The
1.) A company has established 4 pounds of Material J at $3 per pound as the standard for the material in its Product Z. The company has just produced 1,300 units of this product, using 5,400 pounds of Material J that cost $14,780.The direct materials price variance is (Do not round intermediate calculations): |
$820 favorable.
$1,420 favorable.
$600 unfavorable.
$1,420 unfavorable.
$600 favorable.
2.)
Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials price variance is: |
Direct materials standard (7 kg. @ $2.25/kg.) | $15.75 per finished unit |
Actual cost of materials purchased | $371,750 |
Actual direct materials purchased and used | 155,000 kg. |
$22,000 unfavorable.
$45,000 unfavorable.
$45,000 favorable.
$23,000 unfavorable.
$23,000 favorable.
3.)
The following company information is available for March. The direct materials price variance is: |
Direct materials purchased and used | 3,400 feet @ $75 per foot |
Standard costs for direct materials for March production | 3,500 feet @ $73 per foot |
$7,000 unfavorable.
$500 favorable.
$6,800 favorable.
$6,800 unfavorable.
$7,000 favorable.
4.)
The standard materials cost to produce 1 unit of Product R is 9 pounds of material at a standard price of $53 per pound. In manufacturing 5,000 units, 44,000 pounds of material were used at a cost of $54 per pound. What is the total direct materials cost variance? |
$9,000 unfavorable.
$54,000 favorable.
$54,000 unfavorable.
$9,000 favorable.
$45,000 unfavorable.
5.)
Fletcher Company collected the following data regarding production of one of its products. Compute the total direct labor variance. |
Direct labor standard (2 hrs. @ $12.75/hr.) | $25.50 per finished unit |
Actual direct labor hours | 97,200 hrs. |
Actual finished units produced | 48,000 units |
Actual cost of direct labor | $1,304,650 |
$80,650 unfavorable.
$80,650 favorable.
$65,350 favorable.
$65,350 unfavorable.
$15,300 favorable.
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