Question
1. Assume the following information appears in the standard cost card for a company that makes only one product: Standard Quantity or Hours Standard Price
1. Assume the following information appears in the standard cost card for a company that makes only one product:
| Standard Quantity or Hours | Standard Price or Rate | Standard Cost | ||
Direct materials | 5 | pounds | $ 11.00 | per pound | $ 55.00 |
Direct labor | 2 | hours | $ 18.00 | per hour | $ 36.00 |
Variable manufacturing overhead | 2 | hours | $ 3.00 | per hour | $ 6.00 |
During the most recent period, the following additional information was available:
20,000 pounds of material was purchased at a cost of $10.50 per pound.
All of the material that was purchased was used to produce 3,900 units.
8,000 direct labor-hours were recorded at a total cost of $132,000.
What is the direct labor efficiency variance?
2. Assume the following information appears in the standard cost card for a company that makes only one product:
| Standard Quantity or Hours | Standard Price or Rate | Standard Cost | ||
Direct materials | 5 | pounds | $ 11.50 | per pound | $ 57.50 |
Direct labor | 2 | hours | $ 17.00 | per hour | $ 34.00 |
Variable manufacturing overhead | 2 | hours | $ 3.00 | per hour | $ 6.00 |
During the most recent period, the following additional information was available:
20,000 pounds of material was purchased at a cost of $10.50 per pound.
All of the material that was purchased was used to produce 3,900 units.
8,000 direct labor-hours were recorded at a total cost of $132,000.
What is the direct materials spending variance?
3. Assume the following:
The standard price per pound is $2.00.
The standard quantity of pounds allowed per unit of finished goods is 4 pounds.
The actual quantity of materials purchased and used in production is 50,000 pounds.
The materials price variance is $5,000 U.
The company produced 13,000 units of finished goods during the period.
The actual price per pound of direct materials is closest to:
4. Assume the following:
The standard price per pound is $2.35.
The standard quantity of pounds allowed per unit of finished goods is 4 pounds.
The actual quantity of materials purchased and used in production is 50,100 pounds.
The actual purchase price per pound of materials was $2.25.
The company actually produced 13,000 units of finished goods during the period; however, its planning budget was based on 12,800 units.
What is the materials quantity variance?
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