1)

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

Standard quantity		6.5	liters per unit
Standard price	$	1.00	per liter
Standard cost	$	6.50	per unit

The company budgeted for production of 2,300 units in April, but actual production was 2,400 units. The company used 16,410 liters of direct material to produce this output. The company purchased 18,600 liters of the direct material at $1.10 per liter.

The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for April is:

• $891 F

• $891 U

• $810 U

• $810 F

2)

Majer Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		6.4	ounces	$	3.00	per ounce	$	19.20
Direct labor		0.4	hours	$	13.00	per hour	$	5.20
Variable overhead		0.4	hours	$	5.00	per hour	$	2.00

The company reported the following results concerning this product in February.

Originally budgeted output		4,800	units
Actual output		4,900	units
Raw materials used in production		30,230	ounces
Actual direct labor-hours		1,910	hours
Purchases of raw materials		32,600	ounces
Actual price of raw materials	$	2.90	per ounce
Actual direct labor rate	$	12.40	per hour
Actual variable overhead rate	$	4.90	per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for February is:

• $245 U

• $250 U

• $245 F

• $250 F

4)

Pippin Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.

Inputs	Standard Quantity or Hours per Unit of Output			Standard Price or Rate
Direct materials		5.0	grams	$	7.00	per gram
Direct labor		0.30	hours	$	21.30	per hour
Variable manufacturing overhead		0.30	hours	$	9.60	per hour

The company has reported the following actual results for the product for June:

Actual output		8,500	units
Raw materials purchased		48,100	grams
Actual price of raw materials	$	7.70	per gram
Raw materials used in production		42,490	grams
Actual direct labor-hours		2,300	hours
Actual direct labor rate	$	21.70	per hour
Actual variable overhead rate	$	9.80	per hour

The labor rate variance for the month is closest to:

• $920 U

• $920 F

• $1,020 F

• $1,020 U

6)

Ravena Labs., Inc. makes a single product which has the following standards:

Direct materials: 2.5 ounces at $20 per ounce

Direct labor: 1.4 hours at $12.50 per hour

Variable manufacturing overhead: 1.4 hours at 3.50 per hour

Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The following data are available for October:

• 3,750 units of compound were produced during the month.
• There was no beginning direct materials inventory.
• Direct materials purchased: 12,000 ounces for $225,000.
• The ending direct materials inventory was 2,000 ounces.
• Direct labor-hours worked: 5,600 hours at a cost of $67,200.
• Variable manufacturing overhead costs incurred amounted to $18,200.
• Variable manufacturing overhead applied to products: $18,375.

The labor efficiency variance for October is:

• $1,900 Unfavorable

• $1,400 Favorable

• $4,375 Unfavorable

• $3,750 Favorable