1. Peridot Inc. manufactures cooking oil. The actual quantity of input used for the month of June was 400 liters. The actual price per liter of raw material was $5 per liter, while the standard price per liter was $2.00 per liter. Determine the material price variance of the month of June.

a.$200F

b.$200U

c.$1,200F

d.$1,200U

2. Alpha Company manufactures vitamin capsules packed in containers of 40 capsules each. 10,800 containers are produced during the first week of September. The unit quantity standard for machine operators is 0.50 hours per container and the actual machine operator hours used were 0.30 per container. Compute the operator hours that should be used for the actual output of 10,800 containers.

a.5,400 hours

b.6,750 hours

c.3,240 hours

d.4,050 hours

3. In the process of setting production standards, it is better for a company to aim for:

a.theoretical standards.

b.ideal standards.

c.currently achievable standards.

d.consensus standards.

Alpha Company manufactures Product P and sells it in packs of 10 units. The actual results for the first week in January are as follows:

Actual production	20,000 packs of Product P
Actual cost of raw material Q	96,500 units at $0.90
Actual cost of labor	480 hours at $6.25
Standard quantity of raw material	96,000 units for 20,000 units of Product P
Standard price of raw material Q	$0.81

4. Calculate the total material variance for Product P for the first week in January.

a.$9,090 U

b.$3,771 F

c.$2,669 F

d.$12,861 U