Question 31:

Cost standards for one unit of product no. C77:
Direct material	3 pounds at $2.50 per pound	$	7.50
Direct labor	5 hours at $7.50 per hour		37.50
Actual results:
Units produced	7,800 units
Direct material purchased	26,000 pounds at $2.70	$	70,200
Direct material used	23,100 pounds at $2.70		62,370
Direct labor	40,100 hours at $7.30		292,730

Use the information to compute the following variances. The direct-material quantity variance is:

Multiple Choice

• $750 F.

• $750 U.

• $6,500 U.

• $6,500 F.

• None of the answers is correct.

Question 32: HAS DIFFERENT NUMBERS

Cost standards for one unit of product no. C77:
Direct material	3 pounds at $2.70 per pound	$	8.10
Direct labor	7 hours at $7.30 per hour		51.10
Actual results:
Units produced	5,700 units
Direct material purchased	26,100 pounds at $2.90	$	75,690
Direct material used	16,800 pounds at $2.90		48,720
Direct labor	40,600 hours at $7.10		288,260

Use the information to compute the following variances. The direct-material price variance is:

Multiple Choice

• $3,360 F.

• $3,360 U.

• $5,220 F.

• $5,220 U.

• None of the answers is correct.

Question 33: Same numbers as #32

The direct-labor rate variance is:

Multiple Choice

• $7,840 F.

• $7,840 F.

• $8,120 F.

• $8,120 U.

• None of the answers is correct.