1.ABC Company, a lounge chair manufacturer, uses a standard costing system. Each unit of a finished product contains 3 yards of cloth. However, there is unavoidable waste of 0.5 yards per unit of finished product that occurs when the cloth is cut for assembly. The cost of the cloth is Rs10 per yard. The standard direct material cost for cloth per unit of finished product is?

Rs 5

Rs 10

Rs 25

Rs 35

2.Mahindra Company employs a standard cost system in which direct materials inventory is carried at standard cost. The company has established the following standard for the materials costs of one unit of product Standard Quantity 6 kg Standard price 7 Rs/kg Standard cost 42 Rs During June, the company purchased 165,000 Kg of direct material at a total cost of Rs1, 171,500. The company manufactured 25,000 units of product during June using 151,000 Kg of direct materials. (Note that this is the same data that was provided for the previous question.) The direct material quantity variance for June is?

7,000 favorable

7,000 unfavorable

7,100 favorable

7,100 unfavorable

4. MUKESH Company employs a standard cost system in which direct materials inventory is carried at standard cost. The company has established the following standard for the direct labor costs of one unit of product Standard quantity 1.3 hours Standard price 22RS/ per hour Standard cost 28.60 Rs The total factory wages for June were Rs800, 000, 90 percent of which were for direct labor. The company manufactured 25,000 units of product during June using 32,000 direct labor hours. The direct labor rate variance for June is?

16,000 favorable

16,000 unfavorable

96,000 favorable

96,000 unfavorable

5.Material A has standard price per kg is 5 Rs, standards usage per unit is 7 kg, actual price per kg is 4.5 Rs, actual usage per unit is 8 kg, material price variance would be?

4 Rs adverse

4 Rs favorable

3.5 Rs adverse

3.5 Rs favorable

7.Job X has standard hours worked 64.5, actual hours worked 61.25, standard wage rate is 4.15 Rs, actual wage rate 4.25 Rs, actual labor variance will be?

7.36 favorable

6.13 adverse

6.13 favorable

13.49 favorable

11.Job ABC has standard hours worked 28, actual hours worked 26.5, standard wage rate is 5.60 Rs, actual wage rate 6.05 Rs, actual labor efficiency variance will be?

9.08 favorable

3.53 adverse

11.93 adverse

8.40 favorable

12. Houghton Company maintains warehouses that stock items carried by its e-retailer clients. When one of Houghton's clients receives an order from an online customer, the order is forwarded to Houghton. Houghton then pulls the item from the warehouse, packs it and ships it to the customer. Houghton uses a predetermined variable overhead rate based on direct labor-hours. According to the company's records, 0.04 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $6.50 per direct-labor hour. During July, Houghton shipped 240,000 orders using 9,200 direct labor-hours. The company incurred a total of $58,880 in variable overhead costs. The variable overhead rate variance during July was?

920 favorable

920 unfavorable

2,600 favorable

2,600 unfavorable

13. As per standard performance levels it takes 1 hour to produce 4 units. If the actual production is 12 units in 6 hours, then how many standard hours have been worked?

2

3

4

6