Question
1. Sheridan Manufacturing Company purchased 15400 switches to make 6700 units. The standard allows for 2 switches per unit. The company actually used 15900 to
1. Sheridan Manufacturing Company purchased 15400 switches to make 6700 units. The standard allows for 2 switches per unit. The company actually used 15900 to produce the 6700 units. Sheridan budgeted $0.76 per switch but had to pay $0.81 per switch. What is Sheridans direct materials price variance for the period?
$795 unfavorable
$770 unfavorable
$670 unfavorable
$535 unfavorable
2. Sheridan Creations purchased 8800 feet of copper tubing at a price of $2.60 per foot and used 9000 feet during the period. The standard quantity allowed for the units produced is 9100 and the standard price of the copper tubing is $2.40 per foot. What is Sheridan Creations direct materials quantity variance for the period?
$240 favorable
$480 favorable
$720 favorable
$240 unfavorable
3. Pharoah Creations purchased 7200 feet of copper tubing at a price of $2.50 per foot and used 7360 feet during the period. The standard price of the copper tubing was $2.70 per foot. What is Pharoah Creations direct materials price variance for the period?
$1472 favorable
$1440 unfavorable
$1472 unfavorable
$1440 favorable
4. If the actual price of direct materials is $200 and the standard price of the direct materials is $180,
The direct materials price variance will be favorable.
The direct materials price variance will be unfavorable.
The direct materials quantity variance will be unfavorable.
There will be no direct materials quantity variance.
5. Assembly line workers at Carla Vista Manufacturing worked a total of 12900 direct labor hours to produce 37000 units. The standard for producing one unit is 15 minutes at a wage rate of $11.60. If the actual wage rate was $11.40 per direct labor hour, Carla Vistas direct labor rate variance is
$9250 favorable.
$4820 unfavorable.
$9250 unfavorable.
$2580 favorable.
6. Assembly line workers at Sheridan Manufacturing worked a total of 10000 direct labor hours to produce 38800 units. The standard for producing one unit is15 minutes at a wage rate of $11.20. If the actual wage rate was $10.7 per direct labor hour, Sheridans direct labor efficiency variance is
$3210 favorable.
$2000 favorable.
$3360 unfavorable.
$4850 unfavorable.
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