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1. The following data relate to direct materials costs for February: Materials cost per yard: standard, $1.91; actual, $2.04 Yards per unit: standard, 4.62 yards; actual, 4.98 yards Units of production: 9,000 The direct materials quantity variance is

   a.$6,188.40 favorable

   b.$6,188.40 unfavorable

   c.$6,609.60 favorable

   d.$6,609.60 unfavorable

2. Direct Materials Variances

   The following data relate to the direct materials cost for the production of 1,800 automobile tires:

   Actual:	49,800 lbs. at $1.95 per lb.
   Standard:	50,800 lbs. at $1.90 per lb.

   a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

   Direct Materials Price Variance	$fill in the blank 1
   Direct Materials Quantity Variance	$fill in the blank 3
   Total Direct Materials Cost Variance	$fill in the blank 5

   b. The direct materials price variance should normally be reported to the . When lower amounts of direct materials are used because of production efficiencies, the variance would be reported to the . When the favorable use of raw materials is caused by the purchase of higher-quality raw materials, the variance should be reported to the .

3. Standard Product Cost

   Atlas Furniture Company manufactures designer home furniture. Atlas uses a standard cost system. The direct labor, direct materials, and factory overhead standards for an unfinished dining room table are as follows:

   Direct labor:	standard rate	$17.00 per hr.
   	standard time per unit	3 hrs.
   Direct materials (oak):	standard price	$11.00 per bd. ft.
   	standard quantity	18 bd. ft.
   Variable factory overhead:	standard rate	$3.20 per direct labor hr.
   Fixed factory overhead:	standard rate	$0.80 per direct labor hr.

   a. Determine the standard cost per dining room table. If required, round your answer to two decimal places. $fill in the blank 1per table

   b. A standard cost system provides Atlas Furniture Companys management a cost control tool using the principle of . Using this principle, cost deviations from standards can be investigated and corrected.

4. Standard Direct Materials Cost per Unit

   Crazy Delicious Inc. produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (1,080 bars) are as follows:

   Ingredient	Quantity		Price
   Cocoa	420	lbs.	$0.30		per lb.
   Sugar	120	lbs.	$0.60		per lb.
   Milk	90	gal.	$1.40		per gal.

   Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent. $fill in the blank 1per bar

5. Direct Labor Variances

   The following data relate to labor cost for production of 5,500 cellular telephones:

   Actual:	3,730 hrs. at $12.80
   Standard:	3,670 hrs. at $13.00

   a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

   Rate variance	$fill in the blank 1
   Time variance	$fill in the blank 3
   Total direct labor cost variance	$fill in the blank 5

   b. The employees may have been less-experienced or poorly trained, thereby resulting in a labor rate than planned. The lower level of experience or training may have resulted in efficient performance. Thus, the actual time required was than standard.