Question
Please answer all 4 as they are parts under 1 question number. Thank you!! A budget prepared for 5,000 units of output called for the
Please answer all 4 as they are parts under 1 question number. Thank you!!
A budget prepared for 5,000 units of output called for the use of $70,000 of direct materials. The company actually produced 7,000 units of output using $84,000 of direct materials. Which of the following is true?
a. The company paid $14,000 less than what would have been budgeted for actual output.
b. The company paid $14,000 more than what would have been budgeted for actual output.
c. The company paid $34,000 more than what was budgeted for actual output.
d. The company paid $34,000 less than what was budgeted for actual output.
Identify the situation below that will result in a favorable materials quantity variance.
a. Actual material price per unit is greater than standard price per unit.
b. Standard material price per unit is greater than actual price per unit.
c. Actual material quantity used is greater than standard quantity.
d. Standard material quantity is greater than actual quantity used.
A purchasing manager purchased materials that were of a lower quality than called for in the product specifications. The manager did this to save the company money. The manager believed that the purchase cost savings will more than offset any losses resulting from materials failure while employees are working with the materials. As a result of the purchase managers decision to purchase lower-quality materials, which of the following is not possible?
a. The materials price variance may improve, becoming more favorable or less unfavorable.
b. The materials quantity variance may get worse, becoming less favorable or more unfavorable.
c. The labor quantity variance may get worse, becoming less favorable or more unfavorable.
d. All the above are possible.
During July 50% of the companys experienced direct labor force took vacations and had to be replaced by lower-paid employees with little or no experience with the job. The job consisted of crafting raw materials into finished products. As a result, the company should expect to experience all of the following except:
a. An unfavorable direct labor quantity (efficiency) variance.
b. A favorable direct labor price (rate) variance.
c. An unfavorable materials quantity variance.
d. An unfavorable materials price variance.
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