1.

Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials price variance is:

Direct materials standard (7 kg. @ $2/kg.)	$14 per finished unit
Actual cost of materials purchased	$322,500
Actual direct materials purchased and used	150,000 lbs.

$22,500 favorable.

$27,500 unfavorable.

$50,000 unfavorable.

$22,500 unfavorable.

$50,000 favorable.

2.

Use the following data to find the direct labor rate variance if the company produced 3,500 units during the period.

Direct labor standard (4 hrs. @ $7/hr.)	$28 per unit
Actual hours worked	12,250
Actual rate per hour	$7.50

$7,000 unfavorable.

$12,250 favorable.

$6,125 unfavorable.

$6,125 favorable.

$7,000 favorable.

3.

Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials quantity variance.

Direct materials standard (6 lbs. @ $2/lb.)	$12 per finished unit
Actual direct materials used	243,000 lbs.
Actual finished units produced	40,000 units
Actual cost of direct materials used	$483,570

$6,000 unfavorable.

$2,430 favorable.

$3,570 unfavorable.

$3,570 favorable.

$2,430 unfavorable.

4.

A company uses the following standard costs to produce a single unit of output.

Direct materials	6 pounds at $0.90 per pound	=	$5.40
Direct labor	0.5 hour at $12.00 per hour	=	$6.00
Manufacturing overhead	0.5 hour at $4.80 per hour	=	$2.40

During the latest month, the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400. Based on this information, the direct labor efficiency variance for the month was:

$3,650 favorable

$2,450 favorable

$1,200 unfavorable

$1,200 favorable

$2,450 unfavorable

5.

Georgia, Inc. has collected the following data on one of its products. The direct materials quantity variance is:

Direct materials standard (4 lbs. @ $1/lb.)	$4 per finished unit
Total direct materials cost varianceunfavorable	$13,750
Actual direct materials used	150,000 lbs.
Actual finished units produced	30,000 units

$16,250 favorable.

$30,000 favorable.

$13,750 favorable.

$30,000 unfavorable.

$13,750 unfavorable.

6.

The following information describes a company's usage of direct labor in a recent period. The direct labor rate variance is:

Actual hours used	45,000
Actual rate per hour	$15.00
Standard rate per hour	$14.50
Standard hours for units produced	47,000

$22,500 unfavorable.

$52,500 unfavorable.

$29,000 unfavorable.

$29,000 favorable.

$52,500 favorable.

7.

Fletcher Company collected the following data regarding production of one of its products. Compute the total direct labor variance.

Direct labor standard (2 hrs. @ $12.75/hr.)	$25.50 per finished unit
Actual direct labor hours	81,500 hrs.
Actual finished units produced	40,000 units
Actual cost of direct labor	$1,100,250

$80,250 unfavorable.

$80,250 favorable.

$61,125 favorable.

$61,125 unfavorable.

$19,125 favorable.

8.

Use the following data to find the direct labor rate variance if the company produced 7,000 units of product during the period.

Standard:
Direct labor (3.2 hrs. per unit @ $7/hr.)	$22.40 per unit
Actual cost incurred:
Direct labor (24,500 hrs. @ $7.50/hr.)	$183,750

$26,950 favorable.

$14,700 favorable.

$12,250 favorable.

$12,250 unfavorable.

$14,700 unfavorable.

9.

Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials quantity variance is:

Direct materials standard (7 kg. @ $2/kg.)	$14 per finished unit
Actual cost of materials purchased	$322,500
Actual direct materials purchased and used	150,000 kg

$22,500 unfavorable.

$27,500 unfavorable.

$50,000 favorable.

$22,500 favorable.

$50,000 unfavorable.