NA REVIEW CHP G - ANA REVIEW CHP. 9, 10 & 11 54 The following data have been provided by Petri Corporation: Budgeted production.... Standard machine-hours per motor... Standard Indirect labor rate............... Standard power rate Actual production........ Actual machine-hours (total).. Actua) Indirect labor cost (total). Actual power cost (total)...... 7.800 motors 6.9 machine hours $2.50 per machine-hour $2,00 per machine-hour 8,000 motors 54,510 machine-hours $132.685 $108,158 Indico labor and power are both elements of variable manufacturing overhead. sharlable overhead rate variance for indirect labor is closest to: A. $1,725 F B. $3,590 F C. $3,590 U D. $5,315 F 55. Sizzle Company uses a standard cost system to collect costs related to the production of its "No-Stick" lawn chairs. The direct material for the chairs is teflon. Sizzle uses a standard direct material cost of $40.00 per chair (0.8 pounds of teflon $50.00 per pound). During April, Sizzle purchased 2,100 pounds of teflon for $106,575. Sizzle used 1,750 pounds of this teflon in April to produce 1,800 lawn chairs. Required: Calculate Sizzle's materials price and materials quantity variances for April. INA REVIEW CHP. 9.10 & 11 99 Stench Foods Corporation uses a standard cost system to collect costs related to the production of its garlic flavored yogurt. The garlic (materials) standards for each container of yogurt produced are 0.8 ounces of crushed garlic at a standard cost of $2.30 per ounce. During the month of June, Stench purchased 75,000 ounces of crushed garlic at a total cost of $171,000. Stench used 64,000 of these oues to produce 71,500 containers of yogurt The direct materials purchases varianon is computed when the materials are purchased. 48. What is Stench's materials price variance for June? $1,500 Favorable $15,640 Unfavorable C. $17,250 Favorable D. $23,800 Favorable 49 Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost. Jackson has established the following standards for one unit of product. Standard Quantity Standard Price or Rate Standard Cost Direct materials 5 pounds $3.60 per pound $18.00 Direct labor... 1.25 hours $12.00 per hour $15.00 During May, Jackson purchased 125,000 pounds of direct material at a total cost of $475,000. The total factory wages for May were $364,000, 90 percent of which were for direct labor. Jackson manufactured 22,000 units of product during May using 108,000 pounds of direct material and 28,000 direct labor-hours. 49. The price variance for the direct material acquired by Jackson Industries during May is: A. $21,600 Favorable B. $25,000 Unfavorable C. $28,000 Favorable D. $21,600 Unfavorable 50. The materials quantity variance for May is: A. $1,650 F B. $1,650 U C. $550 U D. $720 F 51. The materials price variance for the period is: A. $1,250 F B. $1,500 F C. $1,250 U D. $1,500 U
