Question
1. If actual costs are less than standard costs, there is a(n) A. normal variance. B. unfavorable variance. C. favorable variance. D. error in the
1. If actual costs are less than standard costs, there is a(n)
A. | normal variance. | |
B. | unfavorable variance. | |
C. | favorable variance. | |
D. | error in the accounting system. |
2. If 20,000 pounds of direct materials are purchased for $14,400 on account and the standard cost is $.73 per pound, the journal entry to record the purchase would include
A. | a debit to Raw Materials Inventory for $14,000 | |
B. | a debit to Raw Materials Inventory for $14,400 | |
C. | a credit to the Materials Price Variance for $200 | |
D. | a debit to Work In Process Inventory for $14,600 |
3. Staley Company has a materials price standard of $3.00 per pound. Two thousand pounds of materials were purchased at $3.30 a pound. The actual quantity of materials used was 2,000 pounds, although the standard quantity allowed for the output was 1,800 pounds. Staley Company's materials price variance is
A. | $60 U. | |
B. | $600 U. | |
C. | $540 U. | |
D. | $600 F. |
4. Staley Company has a materials price standard of $3.00 per pound. Two thousand pounds of materials were purchased at $3.30 a pound. The actual quantity of materials used was 2,000 pounds, although the standard quantity allowed for the output was 1,800 pounds. Staley Company's materials quantity variance is
A. | $600 U. | |
B. | $600 F. | |
C. | $660 F. | |
D. | $660 U. |
5. Staley Company has a materials price standard of $3.00 per pound. Two thousand pounds of materials were purchased at $3.30 a pound. The actual quantity of materials used was 2,000 pounds, although the standard quantity allowed for the output was 1,800 pounds. Staley Company's total materials variance is
A. | $1,200 U. | |
B. | $1,200 F. | |
C. | $1,260 U. | |
D. | $1,260 F. |
6. The per-unit standards for direct labor are 2 direct labor hours at $12 per hour. If in producing 1,200 units, the actual direct labor cost was $24,990 for 2,100 direct labor hours worked, the direct labor quantity variance is
A. | $4,800 F | |
B. | $3,600 F | |
C. | $3,600 U | |
D. | $210F |
7. The per-unit standards for direct labor are 2 direct labor hours at $12 per hour. If in producing 1,200 units, the actual direct labor cost was $24,990 for 2,100 direct labor hours worked, the direct labor price variance is
A. | $1,600 U | |
B. | $210 F | |
C. | $3,810 F | |
D. | $3,600 F |
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