King Company uses a standard cost system. It has a standard of 2.5 hours per unit at $15 per hour. It produced 2,750 units this period. It used 7,000 direct labor hours at $15.80 per hour. How much was the labor rate variance? A. $5,600 unfavorable B. $6,960 favorable C. $5,600 favorable D. $2,200 unfavorable E. $6,960 unfavorable D Company has provided the following information for use in preparing flexible budgets. At the 26,000 unit level of production and sales, the per unit variable costs for materials, labor, and overhead are $.15 and $.20 and $.10 respectively. At the 26,000 unit level of production and sales, fixed costs for supervision and rent are $1,800 and $1,100 respectively. Assuming the relevant range for the given fixed costs is between 25,000 to 30,000 units of production, how much would materials cost and rent cost be in a flexible budget at the 28,000 unit level? A. $4,200 materials and $1,100 rent B. $12,600 materials and $2,900 rent C. $3,900 materials and $1,100 rent D. $4,200 materials and $1,800 rent E. $5,600 materials and $1,800 rent Which of the following factors would cause an unfavorable material quantity variance? A. receiving discounts for purchasing larger than normal quantities B. using poorly maintained machinery C. using higher quality materials D. using more highly skilled workers Because C Company has an operating environment with considerable uncertainty, it prepares flexible budgets for several different volume levels. The per unit budgeted variable costs for direct materials, direct labor, supplies, indirect labor, and power are $7, $10, $1, $.50 and $.05 respectively. The budgeted fixed overhead for the period is Supervision of $4,000 and Depreciation of $3,000 and Rent of $2,000. What is the difference in total flexible budget costs between the volume range of 4,000 units and 5,000 units? A. $17,000 B. $9,275 C. $0 D. $18,550 E. $1,000 Joe Corporation has material standards of 3.5 pounds per unit at $4.50 per pound. Actual materials purchased were 12,300 pounds at $4.25 per pound. Actual materials used were 11,750 pounds. There were 3,500 units made this month. What was the material price variance based on quantity purchased? A. $2,938 favorable B. $3,075 favorable C. $3,063 unfavorable D. $3,075 unfavorable E. $2,938 unfavorable Bob Corporation has material standards of 3.5 pounds per unit at $4.50 per pound. Actual materials purchased were 12,300 pounds at $4.25 per pound. Actual materials used were 11,750 pounds. There were 3,500 units made this month. What was the material quantity variance? A. $225 unfavorable B. $2,475 favorable C. $2,250 favorable D. $2,950 unfavorable E. $225 favorable Queen Company uses a standard cost system. It has a standard of 2.5 hours per unit at $15 per hour. It produced 2,750 units this period. It used 7,000 direct labor hours at $15.80 per hour. How much was the labor efficiency variance? A. $1,875 unfavorable B. $1,975 favorable C. $1,875 favorable D. $1,975 unfavorable E. $125 unfavorable A materials price variance would not be caused by: A. not taking a quantity discount B. requiring laborers to work overtime C. ordering the wrong quality of materials D. ordering from a new supplier who is located farther from our factory resulting in higher freight charges