1. Hexagon Corp. manufactures jute bags. Each bag requires 5 Kgs of raw material, R+. During the month of November it produced 3,000 bags. It consumed 12,000 Kgs of R+ during the period. The standard price per kg of R+ is $8. At the end of November, Hexagon Corp. found that it had a favorable materials price variance of $24,000. What was Hexagon Corp.s actual cost per unit of R+?

1. $10
2. $8
3. $6
4. $4

2. Which of the following measures the difference between the direct materials actually used and the direct materials that should have been used for the actual output?

1. Total labor variance
2. Materials price variance
3. Materials usage variance
4. Total budget variance

3. Galaxy Technologies Corp. manufactures cell phones. During the year, 150,000 phones were manufactured. Materials and labor standards for producing the phones are as follows:

Direct materials (2 pieces of plastic material @ $3.25)	$6.50
Direct labor (2 hours @ $10)	20.00

Galaxy Technologies Corp. purchased and used 500,000 pieces of plastic material at $2.50 each, and its actual labor hours were 340,000 hours at a wage rate of $10.50. What is the materials price variance?

1. $112,500 F
2. $112,500 U
3. $375,000 U
4. $375,000 F

4. The responsibility for controlling the materials price variance usually belongs to the _____.

1. purchasing agent
2. production manager
3. plant manager
4. supply agent