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BUAC 20B Managerial Accounting

Extra Credit Worksheet 7 points

Information Part 1

Hanson Inc. has the following direct materials standard to manufacture one Zippy:

1.5 pounds per Zippy at $4.00 per pound

Last week, 1,700 pounds of materials were purchased and used to make 1,000 Zippies.

The materials cost a total of $6,630.

How many pounds of materials should Hanson have used to make 1,000 Zippies?

a.1,700 pounds

b.1,500 pounds

c.1,200 pounds

d.1,000 pounds

Hansons materials quantity variance (MQV) for the week was:

a.$170 unfavorable

b.$170 favorable

c.$800 unfavorable

d.$800 favorable

Hansons materials price variance (MPV) for the week was:

a.$170 unfavorable

b.$170 favorable

c.$800 unfavorable

d.$800 favorable

Information Part 2

Hanson Inc. has the following direct labor standard to manufacture one Zippy

1.5 standard hours per Zippy at $12.00 per direct labor hour

Last week, 1,550 direct labor hours were worked at a total labor cost of $18,910 to make 1,000 Zippies.

Hansons labor rate variance (LRV) for the week was:

a. $310 unfavorable

b. $310 favorable

c. $300 unfavorable

d. $300 favorable

Hansons labor efficiency variance (LEV) for the week was:

a. $590 unfavorable.

b. $590 favorable.

c. $600 unfavorable.

d. $600 favorable

Information Part 3

Hanson Inc. has the following variable manufacturing overhead standard to manufacture one Zippy:

1.5 standard hours per Zippy at $3.00 per direct labor hour

Last week, 1,550 hours were worked to make 1,000 Zippies, and $5,115 was spent for variable manufacturing overhead.

Hansons rate variance (VMRV) for variable manufacturing overhead for the week was:

a.$465 unfavorable

b.$400 favorable

c.$335 unfavorable

d.$300 favorable

Hansons efficiency variance (VMEV) for variable manufacturing overhead for the week was:

a.$435 unfavorable

b.$435 favorable

c.$150 unfavorable

d.$150 favorable