1.A company developed the following per-unit standards for its product: 2 pounds of direct materials at $10 per pound. Last month, 2500 pounds of direct materials were purchased for $9500. The direct materials price variance for last month was

$15500 favorable.

$15500 unfavorable.

$7750 favorable.

$9500 favorable.

2. The standard number of hours that should have been worked for the output attained is 4000 direct labor hours and the actual number of direct labor hours worked was 4300. If the direct labor price variance was $2150 unfavorable, and the standard rate of pay was $7 per direct labor hour, what was the actual rate of pay for direct labor?

$5.50 per direct labor hour

$7.50 per direct labor hour

$7.00 per direct labor hour

$6.50 per direct labor hour

3. If a company assigns factory labor to production at a cost of $79000 when standard cost is $78000, it will

credit Labor Quantity Variance for $1000.

debit Labor Price Variance for $1000.

debit Labor Quantity Variance for $1000.

credit Labor Price Variance for $1000.

4. Stefani Company has gathered the following information about its product.

Direct materials: Each unit of product contains3.00pounds of materials. The average waste and spoilage per unit produced under normal conditions is0.10pounds. Materials cost $1per pound, but Stefani always takes the1.00% cash discount all of its suppliers offer. Freight costs average $0.25per pound.

Direct labor.Each unit requires1.00hours of labor. Setup, cleanup, and downtime average0.10hours per unit. The average hourly pay rate of Stefani's employees is $10.00. Payroll taxes and fringe benefits are an additional $2.00per hour.

Manufacturing overhead.Overhead is applied at a rate of $4.00per direct labor hour.

Compute Stefani's total standard cost per unit.(Round answer to 2 decimal places, e.g. 1.25.)

Total standard cost per unit$

5.The following direct materials and direct labor data pertain to the operations of Laurel Company for the month of August.

Costs

Actual labor rate$13per hourActual materials price$290per tonStandard labor rate$12.50per hourStandard materials price$292per ton

Quantities

Actual hours incurred and used4,200hoursActual quantity of materials purchased and used1,000tonsStandard hours used4,290hoursStandard quantity of materials used990tons

(a)

Compute the total, price, and quantity variances for materials and labor.

Total materials variance$

Favorable

Unfavorable

Neither favorable nor unfavorable

Materials price variance$

Unfavorable

Neither favorable nor unfavorable

Favorable

Materials quantity variance$

Unfavorable

Favorable

Neither favorable nor unfavorable

Total labor variance$

Neither favorable nor unfavorable

Unfavorable

Favorable

Labor price variance$

Favorable

Unfavorable

Neither favorable nor unfavorable

Labor quantity variance