1. Leonesio Corporation makes a product that uses a material with the following standards:

Standard quantity	8.2	kilos per unit
Standard price	$4.00	per kilo
Standard cost	$32.80	per unit

The company budgeted for production of 3,100 units in August, but actual production was 3,200 units. The company used 27,600 kilos of direct material to produce this output. The company purchased 29,000 kilos of the direct material at a total cost of $118,900. The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for August is:

Multiple Choice

• $5,576 F

• $5,576 U

• $5,440 F

• $5,440 U

2.

Casivant Corporation makes a product that uses a material with the following direct material standards:

Standard quantity	3.8	pounds per unit
Standard price	$4.00	per pound

The company produced 7,300 units in November using 28,710 pounds of the material. During the month, the company purchased 30,800 pounds of the direct material at a total cost of $117,040. The direct materials purchases variance is computed when the materials are purchased.

The materials price variance for November is:

Multiple Choice

• $5,548 U

• $6,160 U

• $6,160 F

• $5,548 F