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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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