Question
Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials quantity variance. Direct materials standard (6 pounds @
Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials quantity variance.
Direct materials standard (6 pounds @ $2/pound) | $ 12 | per finished unit |
---|---|---|
Actual direct materials used | 188,550 | pounds |
Actual finished units produced | 31,000 | units |
Actual cost of direct materials used | $ 374,760 |
Multiple Choice
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$2,760 unfavorable.
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$2,340 unfavorable.
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$5,100 unfavorable.
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$2,760 favorable.
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$2,340 favorable.
A company uses the following standard costs to produce a single unit of output.
Direct materials | 8 pounds at $0.80 per pound = | $ 6.40 |
---|---|---|
Direct labor | 0.50 hour at $9.00 per hour = | $ 4.50 |
Manufacturing overhead | 0.50 hour at $4.40 per hour = | $ 2.20 |
During the latest month, the company purchased and used 76,000 pounds of direct materials at a price of $1.10 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $41,710 based on 4,850 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $18,000 and fixed manufacturing overhead incurred was $12,000. Based on this information, the direct materials quantity variance for the month was:
Multiple Choice
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$3,000 favorable
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$3,200 favorable
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$22,800 favorable
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$3,200 unfavorable
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$22,800 unfavorable
Ship Company produces storage crates that require 1.9 meters of material at $0.20 per meter and 0.10 direct labor hours at $17.00 per hour. Overhead is applied at the rate of $12 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card?
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$2.90.
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$3.28.
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$2.08.
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$14.08.
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$29.38.
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