Multiple Choice Question 128

Waterwayhas a standard of 1.5 pounds of materials per unit, at $6 per pound. In producing 1500 units, Waterway purchased and used 2600 pounds of materials at a total cost of $15210. Waterway's total material variance is

$2100 U.

$1575 F.

$390 U.

$1710 U.

Multiple Choice Question 72

Bonita Industriesproduces a product that requires 2.5 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.5 pounds and 0.1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.1 per pound, and receiving and handling costs are $0.1 per pound. The hourly wage rate is $12 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is 0.2 hours and 0.1 hours, respectively.

The standard direct materials quantity per unit is

2.5 pounds.

3.0 pounds.

2.6 pounds.

3.1 pounds.