Hanson Inc.s direct materials standard to manufacture one Zippy is 1.5 pounds per Zippy at

$4.00 per pound. Last month, 1,700 pounds of materials were purchased and used to make 1,000

Zippies. The materials cost a total of $6,630.

1. How many pounds of materials should Hanson have used to make 1,000 Zippies?

a. 1,700 pounds.

b. 1,500 pounds.

c. 1,200 pounds.

d. 1,000 pounds.

2. Hansons direct materials quantity variance for the month was:

a. $170 unfavorable.

b. $170 favorable.

c. $800 unfavorable.

d. $800 favorable.

3. Hansons direct materials price variance for the month was:

a. $170 unfavorable.

b. $170 favorable.

c. $800 unfavorable.

d. $800 favorable.

4. Compute the direct materials spending variance.

Hanson Inc.s direct labor standard to manufacture one Zippy is 1.5 standard hours per Zippy at

$12.00 per direct labor hour. Last month, 1,550 direct labor hours were worked at a total labor

cost of $18,910

to make 1,000 Zippies.

5. Hansons direct labor rate variance for the month was:

a. $310 unfavorable.

b. $310 favorable.

c. $300 unfavorable.

d. $300 favorable.

6. Hansons direct labor efficiency variance for the month was:

a. $590 unfavorable.

b. $590 favorable.

c. $600 unfavorable.

d. $600 favorable.

7. Hansons direct labor spending for the month was:

a. $290 unfavorable.

b. $290 favorable.

c. $910 unfavorable.

d. $910 favorable.

Hanson Inc.s variable manufacturing overhead standard to manufacture one Zippy is 1.5

standard hours per Zippy at $3.00 per direct labor hour. Last month, 1,550 hours were

worked to make 1,000 Zippies, and $5,115 was spent for variable manufacturing overhead.

8. Hansons rate variance for variable manufacturing overhead for the month was:

a. $465 unfavorable.

b. $400 favorable.

c. $335 unfavorable.

d. $300 favorable.

9. Hansons efficiency variance for variable manufacturing overhead for the month was:

a. $435 unfavorable.

b. $435 favorable.

c. $150 unfavorable.

d. $150 favorable.

10. Compute Hansons variable manufacturing overhead spending variance for the month.