47 to 50 pease

47) 47) Benson Company manufactures special metallic materials for luxury homes that require highly skilled labor. Benson uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 2 pounds per unit: $3 per pound Direct labor: 5 hours per unit: $16 per hour Benson produced 4000 units during the quarter. At the end of the quarter, an examination of the labor costs records showed that the company used 25.000 direct labor hours and actual total direct labor costs were $250,000. What is the direct labor efficiency variance? D) $80,000 F B) $80,000 U C ) $70.000 U A) $70,000 F 18 48) The production manager of a company, in an effort to gain a promotion, negotiated a new labor contract with the factory employees that required them to bear a greater percentage of benefit costs than before, thus bringing down the cost of direct labor to the company. Shortly afterward, several experienced and highly skilled workers resigned, and were replaced by new employees whose work was very slow during their training period. At the end of the quarter, the company's profits fell 10%. This would produce an) A) unfavorable direct materials cost variance B) unfavorable direct materials efficiency variance C) favorable direct labor cost variance D) favorable direct labor efficiency variance 49 49) Under a standard cost system, when recording the use of direct materials in the production process. the debit to Work-in-Process Inventory is A) actual quantity times standard cost per unit of direct materials B) standard quantity for actual production times actual cost per unit of direct materials C) actual quantity times actual cost per unit of direct materials D) standard quantity for actual production times standard cost per unit of direct materials 50) The management of Watchdog Security Systems has calculated the following variances Direct materials cost variance Direct materials efficiency variance - Direct labor cost variance Direct labor efficiency variance Total variable overhead variance Total fixed overhead variance $8000 U 40,000 F 15,000 F 13,500 U 8500 F 3500 F D) $12.000 F What is the total direct labor variance of the company? A) $28,500 F C) $15,000 F B) $1500 F