Question
a. If the direct materials purchased costs $200 per unit while the standard price for direct materials is $180, and the total direct material used
a. If the direct materials purchased costs $200 per unit while the standard price for direct materials is $180, and the total direct material used is 1,000 units while the standard direct materials allowed for actual production is 980 units,
The direct materials price variance will be favorable.
The direct materials quantity variance will be unfavorable.
There will be no direct materials price variance
The direct materials quantity variance will be favorable.
b. Assembly line workers at Crane Manufacturing worked a total of 12200 direct labor hours to produce 36200 units. The standard for producing one unit is 15 minutes at a wage rate of $10.2. If the actual wage rate was $10.7 per direct labor hour, Cranes direct labor rate variance is
$6100 favorable.
$4525 favorable.
$6100 unfavorable.
$4525 unfavorable.
c. Assembly line workers at Wildhorse Manufacturing worked a total of 13100 direct labor hours to produce 37200 units. The standard for producing one unit is 15 minutes at a wage rate of $11.80. If the actual wage rate was $11.60 per direct labor hour, Wildhorses direct labor rate variance is
$9300 favorable.
$9300 unfavorable.
$4820 unfavorable.
$2620 favorable.
d. The direct materials price variance is calculated using which of the three amounts?
Actual quantity purchased, actual price paid, standard price paid
Actual quantity purchased, standard quantity purchased, actual price paid
Actual quantity purchased, standard quantity purchased, standard price paid
Standard quantity purchased, actual price paid, standard price paid
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