• 1.Capital Leather Company produces leather footballs. The standard cost for each football is:

Direct material 2 feet of leather at $4.00 per foot

Direct labor 1.5 hours at $12.00 per hour

During February, 1,200 footballs were produced and 2,600 feet of leather were purchased at $4.25 per foot. Production usage was 2,300 feet. Direct labor cost incurred was $20,930 for 1,820 hours. How much is the direct material price variance?

• A.$650 favorable
• B.$650 unfavorable
• C.$575 favorable
• D.$575 unfavorable

2.How much is the direct materials quantity variance?

• A.$100 unfavorable
• B.$400 favorable
• C.$800 favorable
• D.$800 unfavorable

3.How much is the direct labor rate variance?

• A$900 favorable
• B$900 unfavorable
• C$910 favorable
• D$910 unfavorable

4.How much is the direct labor efficiency variance?

• A$20 unfavorable
• B$240 unfavorable
• C$360 unfavorable
• D$360 favorable
• 5.Radical Company produces versascopes. It has a standard wage rate of $9.50 per hour. It has determined that the standard time to assemble one versascope is 2.75 hours. During August, the company?s employees assembled 600 versascopes, and they were paid $15,974 for 1,630 hours of work. What is Radical?s labor efficiency variance?
• A$489 favorable
• B$299 favorable
• C$271 favorable
• D$190 favorable
• 6.Standard Tires? labor standard for the production of one bicycle tire is 4.5 hours at $8.5 per hour. During October, the company?s employees produced 140,000 tires, using 610,000 hours at a total cost of $5,328,400. How much is Standard Tires? labor efficiency variance?
• A.$143,400 unfavorable
• B$26,600 favorable
• C$170,000 favorable
• D$313,400 favorable
• 7.Standard Gears produces lawn mower gears. It uses units as the cost driver for overhead. The following information was provided concerning its standard cost system:

Actual Data	Budgeted/Standard Data
Produced	12,400 units	Budgeted Units	12,500
Materials purchased	4,650 lbs. for a total cost of $32,550	Budgeted Materials	0.40 lb. @ $7.10 per lb.
Materials used	4,700	Budgeted Labor	36 minutes @ $11.00 per hour
Labor worked	7,460 hrs. costing $79,822	Budgeted Variable Overhead	$35,625
Actual Overhead	Fixed: $84,800 Variable: $36,100	Budgeted Fixed Overhead	$85,500

8.How much is the direct material price variance?

• A$465 favorable
• B$1,846 favorable
• C$470 favorable
• D$2,201 favorable
• 9.Winslow Manor Construction provided the following information during the year:
• A$26,000
• B$14,000
• C$9,000
• D$14,000
• 10.Carriage House Cleaners purchased equipment and paid dividends during the year. Where do these amounts appear on the statement of cash flows, respectively?
• A.Operating Activities section, financing activities section
• B.Financing activities section, operating activities section
• C.Investing activities section, operating activities section
• D.Investing activities section, financing activities section
• 11.Selected information from 2014 and 2013 accounting records of Hinley Roofing is provided below:

	Dec. 31, 2014	Dec. 31, 2013
Net Cash provided (used) by operations	$38,000	$39,000
Net cash provided (used) by investing activities	($22,000)	$14,000
Net cash provided (used) by financing activities	($15,000)	($26,000)
Cash balance at end of year		15,000

At the end of 2014, how much is Riddle?s cash balance?

• A$16,000
• B$40,000
• C$28,000
• D$43,000
• 12.Which of the following activities is not reported as a financing activity on the statement of cash flows?
• A.Borrowing from a bank
• B.Paying interest on a long-term note payable
• C.Repaying the principal on a loan
• D.Issuing common stock for cash
• 13.Rodgers Chemicals sold a piece of equipment for cash recognized a gain of $5,000. The original cost was $34,000 and the accumulated depreciation on the equipment just prior to the sale totaled $19,000. What amount will Rodgers Chemicals report in the investing activities section of its statement of cash flows?
• A.$20,000
• B.$54,000
• C.$10,000
• D.$15,000
• 14.Which of the following is reported as an investing activity?
• A.Depreciation on plant assets
• B.Cash payments to acquire new equipment
• C.Cash received for the sale of stock to investors
• D.Interest received on a money market bank account
• 15.Which of the following is considered to be a cash flow provided/used by financing activities?
• A.Dividends received from stock investments
• B.Cash received from customers for amounts due on account
• C.Proceeds from issuing common stock
• D.Interest paid on short-term notes payable
• 16.Which of the following is not a communication by a company?s management that may help alleviate investors and creditors concerns of the company?s financial statements?
• A.News articles
• B.Notes to their financial statements
• C.Assessment of vendors and customers
• D.Press releases

1. Capital Leather Company produces leather footballs. The standard cost for each football is: Direct material 2 feet of leather at $4.00 per foot Direct labor 1.5 hours at $12.00 per hour During February, 1,200 footballs were produced and 2,600 feet of leather were purchased at $4.25 per foot. Production usage was 2,300 feet. Direct labor cost incurred was $20,930 for 1,820 hours. How much is the direct material price variance? A. $650 favorable B. $650 unfavorable C. $575 favorable D. $575 unfavorable How much is the direct materials quantity variance? A. $100 unfavorable B. $400 favorable C. $800 favorable D. $800 unfavorable How much is the direct labor rate variance? A. $900 favorable B. $900 unfavorable C. $910 favorable D. $910 unfavorable How much is the direct labor efficiency variance? A. $20 unfavorable B. $240 unfavorable C. $360 unfavorable D. $360 favorable 2. Radical Company produces versascopes. It has a standard wage rate of $9.50 per hour. It has determined that the standard time to assemble one versascope is 2.75 hours. During August, the company's employees assembled 600 versascopes, and they were paid $15,974 for 1,630 hours of work. What is Radical's labor efficiency variance? A. $489 favorable B. $299 favorable C. $271 favorable D. $190 favorable 3. Standard Tires' labor standard for the production of one bicycle tire is 4.5 hours at $8.5 per hour. During October, the company's employees produced 140,000 tires, using 610,000 hours at a total cost of $5,328,400. How much is Standard Tires' labor efficiency variance? A. $143,400 unfavorable B. $26,600 favorable C. $170,000 favorable D. $313,400 favorable 4. Standard Gears produces lawn mower gears. It uses units as the cost driver for overhead. The following information was provided concerning its standard cost system: Actual Data Budgeted/Standard Data Produced 12,400 units Budgeted Units 12,500 Materials purchased 4,650 lbs. for a total Budgeted Materials 0.40 lb. @ $7.10 per cost of $32,550 lb. Materials used 4,700 Budgeted Labor 36 minutes @ $11.00 per hour Labor worked 7,460 hrs. costing Budgeted Variable $35,625 $79,822 Overhead Actual Overhead Fixed: $84,800 Budgeted Fixed $85,500 Variable: $36,100 Overhead How much is the direct material price variance? A. $465 favorable B. $1,846 favorable C. $470 favorable D. $2,201 favorable 5. Winslow Manor Construction provided the following information during the year: Proceeds from sale of building $65,000 Cash paid to purchase inventories $22,000 Proceeds from issuing long-term debt $17,000 Dividends paid to stockholders $12,000 Purchase of land for cash $56,000 Cash collected from customers $180,000 How much is the net cash provided/used by investing activities during the year? A. $26,000 B. $14,000 C. $9,000 D. $14,000 6. Carriage House Cleaners purchased equipment and paid dividends during the year. Where do these amounts appear on the statement of cash flows, respectively? A. Operating Activities section, financing activities section B. Financing activities section, operating activities section C. Investing activities section, operating activities section D. Investing activities section, financing activities section 7. Selected information from 2014 and 2013 accounting records of Hinley Roofing is provided below: Dec. 31, 2014 Dec. 31, 2013 Net Cash provided (used) $38,000 $39,000 by operations Net cash provided (used) ($22,000) $14,000 by investing activities Net cash provided (used) by financing activities Cash balance at end of year ($15,000) ($26,000) 15,000 At the end of 2014, how much is Riddle's cash balance? A. $16,000 B. $40,000 C. $28,000 D. $43,000 8. Which of the following activities is not reported as a financing activity on the statement of cash flows? A. Borrowing from a bank B. Paying interest on a long-term note payable C. Repaying the principal on a loan D. Issuing common stock for cash 9. Rodgers Chemicals sold a piece of equipment for cash recognized a gain of $5,000. The original cost was $34,000 and the accumulated depreciation on the equipment just prior to the sale totaled $19,000. What amount will Rodgers Chemicals report in the investing activities section of its statement of cash flows? A. $20,000 B. $54,000 C. $10,000 D. $15,000 10. Which of the following is reported as an investing activity? A. Depreciation on plant assets B. Cash payments to acquire new equipment C. Cash received for the sale of stock to investors D. Interest received on a money market bank account 11. Which of the following is considered to be a cash flow provided/used by financing activities? A. Dividends received from stock investments B. Cash received from customers for amounts due on account C. Proceeds from issuing common stock D. Interest paid on short-term notes payable 12. Which of the following is not a communication by a company's management that may help alleviate investors and creditors concerns of the company's financial statements? A. News articles B. Notes to their financial statements C. Assessment of vendors and customers D. Press releases