1. Brooks Company uses a standard costing system. The following information pertains to direct materials for the month of June:

   Standard price per lb.	$15.00
   Actual purchase price per lb.	$14.50
   Actual quantity purchased (1 order)	3,150 lbs.
   Actual quantity used	2,980 lbs.
   Standard quantity (total for actual FG output)	3,000 lbs.
   Actual finished goods output	1,000 units

   Brooks Company reports its direct material price variances at the time of purchase. What is the journal entry to record the direct materials purchase?

   	a.	Debit: Direct Materials $47,250 Credit: Direct Mateirals Price Variance $1,575 Credit: Accounts Payable $45,675
   	b.	Debit: Direct Materials $47,175 Credit: Direct Materials Price Variance $1,500 Credit: Accounts Payable $45,675
   	c.	Debit: Direct Materials $47,165 Credit: Direct Materials Price Variance $1,490 Credit: Accounts Payable $45,675
   	d.	Debit Direct Materials $45,175 Credit: Direct Materials Price Variance $500 Credit: Accounts Payable $45,675

1. Keep It Safe, Inc., manufactures a popular protective case for mobile telephones. The standard quantity of titanium alloy per telephone is 0.5 grams. The standard price of the alloy is $100 per gram. In January, Keep It Safe purchased 2,000 grams of the alloy for a total of $210,000. Keep It Safe produced 3,800 telephones.

   What was the direct material price variance for the alloy in January?

   	a.	$20,000 Favorable.
   	b.	$10,000 Unfavorable.
   	c.	$20,000 Unfavorable.
   	d.	$10,000 Favorable.

1. A firm has the following information.

   • Static budget's FG units: 1,096
   • Actual FG units produced: 1,044
   • Standard DL wage (per hour): $4.9
   • Actual DL wage (per hour): $4.4
   • Standard DL hours per FG unit: 0.5
   • Actual total DL hours: 654

   What is the firm's DL quantity variance?

   NOTE: Do NOT indicate whether the variance is favorable or unfavorable for this question, only a positive number in your answer.

   NOTE: Round your answer to nearest cent.

1. Direct materials:

   Standard quantity (SQ): 3 DM units per finished goods unit.

   Actual quantity purchased (AQP): 4,000 DM units

   Actual quantity used (AQU): 3,900 DM units

   Standard price (SP): $12.00

   Actual price (AP): $13.10

   This firm budgeted 1,000 finished goods units and actually produced 1,200 finished goods units. What are the direct materials variances?

   	a.	DM quantity variance: $10,800 unfavorable DM price variance: $4,400 unfavorable
   	b.	DM quantity variance: $3,600 unfavorable DM price variance: $4,400 unfavorable
   	c.	DM quantity variance: $4,800 unfavorable DM price variance: $4,290 unfavorable
   	d.	DM quantity variance: $12,000 unfavorable DM price variance: $4,290 unfavorable

A firm has the following information.

• Static budget's FG units: 1,120
• Actual FG units produced: 1,104
• Standard DM cost (per unit): $4.2
• Actual DM cost (per unit): $5.7
• Standard DM units used per FG unit: 0.5
• Actual DM units purchased: 678
• Actual DM units used: 650

What is the firm's DM price variance?

NOTE: Do NOT indicate whether the variance is favorable or unfavorable for this question, only a positive number in your answer.

NOTE: Round your answer to nearest cent.

1. Inversion Reversion sells mufflers. These mufflers have the following standard and actual quantities for direct materials used.

   Standard quantity: 1,000 DM units Actual quantity used: 900 DM units

   Inversion Reversion's total standard cost (i.e. standard quantity * standard price) for direct materials is $54,000. Assume the firm's static budget for finished goods muffler production and actual finished goods muffler production are equal.

   What is the direct material quantity variance (round to nearest cent if necessary)?

   	a.	$6,000 favorable
   	b.	$6,000 unfavorable
   	c.	$5,400 favorable
   	d.	$5,400 unfavorable

A firm has the following information.

• Static budget's FG units: 1,043
• Actual FG units produced: 1,154
• Standard DM cost (per unit): $4.5
• Actual DM cost (per unit): $5.1
• Standard DM units used per FG unit: 0.5
• Actual DM units purchased: 660
• Actual DM units used: 672

What is the firm's DM quantity variance?

NOTE: Do NOT indicate whether the variance is favorable or unfavorable for this question, only a positive number in your answer.

NOTE: Round your answer to nearest cent.

At the end of this period, Conch Plebian, Inc. debited $5,100,000 to WIP to record direct labor cost during the period. The firm also debited Direct Labor Price Variance for $12,500. The firm's actual direct labor hours are 250,000 and the actual price is $20.80 per direct labor hour.

What is Conch Plebian Inc.'s direct labor quantity variance?

	a.	$87,500 favorable
	b.	Cannot be determined from this information.
	c.	$87,500 unfavorable
	d.	$100,000 unfavorable