1. A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z. The company has just produced 1,000 units of this product, using 5,200 pounds of Material J that cost $9,880. The direct materials quantity variance is:

$120 favorable.

$400 unfavorable.

$520 unfavorable.

$520 favorable.

$400 favorable.

2.

Which of the following is not part of the flow of events in variance analysis:

Identifying questions and their explanations.

Preparing a standard cost performance report.

Working to ensure that all variances are favorable.

Taking corrective and strategic actions.

Computing and analyzing variances.

3.

Sanchez Company's output for the current period was assigned a $400,000 standard direct labor cost. The direct labor variances included a $10,000 unfavorable direct labor rate variance and a $4,000 favorable direct labor efficiency variance. What is the actual total direct labor cost for the current period?

$410,000.

$414,000.

$406,000.

$394,000.

$386,000.

4.

Based on a predicted level of production and sales of 12,000 units, a company anticipates reporting operating income of $26,000 after deducting variable costs of $72,000 and fixed costs of $10,000. Based on this information, the budgeted amounts of fixed and variable costs for 15,000 units would be:

$10,000 of fixed costs and $72,000 of variable costs.

$12,500 of fixed costs and $90,000 of variable costs.

$12,500 of fixed costs and $72,000 of variable costs.

$10,000 of fixed costs and $81,000 of variable costs.

$10,000 of fixed costs and $90,000 of variable costs.

5.

Milltown Company specializes in selling used cars. During the month, the dealership sold 22 cars at an average price of $15,000 each. The budget for the month was to sell 20 cars at an average price of $16,000. Compute the dealership's sales volume variance for the month.

$22,000 favorable.

$32,000 unfavorable.

$10,000 favorable.

$32,000 favorable.

$22,000 unfavorable.

6.

Based on predicted production of 12,000 units, a company anticipates $150,000 of fixed costs and $123,000 of variable costs. The flexible budget amounts of fixed and variable costs for 10,000 units are:

$125,000 fixed and $123,000 variable.

$150,000 fixed and $123,000 variable.

$102,500 fixed and $150,000 variable.

$150,000 fixed and $102,500 variable.

$125,000 fixed and $102,500 variable.

7.

Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Bartels' standard labor costis $12 per hour. During August, Bartels produced 10,000 units and used 21,040 hours of direct labor at a total cost of $250,376. What is Bartels' labor efficiency variance for August?

$12,480 favorable.

$12,480 unfavorable.

$10,376 unfavorable.

$4,160 favorable.

$14,584 unfavorable.

8.

Sanchez Company's output for the current period was assigned a $200,000 standard direct materials cost. The direct materials variances included a $5,000 favorable price variance and a $3,000 unfavorable quantity variance. What is the actual total direct materials cost for the current period?

$208,000.

$205,000.

$192,000.

$202,000.

$198,000.

9.

Summerlin Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. The company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units. What is the direct materials quantity variance?

$2,950 unfavorable.

$400 unfavorable.

$2,500 unfavorable.

$2,550 unfavorable.

$450 unfavorable.