1. We are analyzing 2 products product X and product Y.
   • Product X requires 3 Part As and 4 Part Bs.
   • Product Y requires 2 Part As and 3 Part Bs.
   • The standard cost for Part A is $12 per unit.
   • The standard cost for Part B is $24 per unit.
   • During this month, the company purchased 50,000 units of Part A for $587,500 (there was no beginning balance).
   • During this month, the company purchased 100,000 units of Part B for $2,500,000 (there was no beginning balance).
   • During the month the company produced 500 Xs and 1000 Ys.
   • During the month the company used 3550 units of Part A and 4975 units of Part B.
   • Factory payroll was $393,000 with 19,500 hours (this is actual - direct labor only).
   • X uses 12 standard direct labor hours.
   • Y uses 14 standard direct labor hours.
   • Labor standard cost is $20 per hour.

hint: for production of both X and Y

Questions 1-25: Suggestion: Use a scratch paper to solve all the variances first, then answer the questions.

1. DL Total Variance (Favorable or Unfavorable)
2. B- Flex Budget is?
3. DL - Efficiency (labor quantity) variance (favorable or unfavorable)
4. P - Use (Quantity) Variance (favorable or unfavorable)
5. DL - Standard Cost (Total)?
6. B - Use variance (Favorable or unfavorable)
7. P - Direct Material Total Variance (Favorable or Unfavorable)
8. P - Use (Quantity) Variance?
9. Rate (Labor Price) Variance (favorable or unfavorable)
10. B - Standard Cost (Total)?
11. P - Actual Cost (total) ?
12. DL - Actual Cost (Total)?
13. P - Price Variance (favorable or unfavorable)
14. DL Total Variance?
15. B - Use (Quantity) Variance?
16. P - Price Variance?
17. B -- Actual Cost (total)?
18. DL -- Flex Budget?
19. B - Direct Material Total Variance?
20. B - Price Variance?
21. Rate Variance (Labor Price)?
22. B - Price Variance (favorable or unfavorable)
23. DL Efficiency Variance (Labor Quantity)?
24. P - Direct Material Total Variance?
25. B - Direct Material Total Variance (favorable or unfavorable)
26. P - Standard Cost (total)?
27. P - Flex Budget ?

P is X

B is Y