1. If the actual quantity of materials used is less than the standard quantity of materials
allowed for the actual output, then the journal entry to record the Direct Materials Quantity
Variance would be a debit.
2. If the actual purchase price for materials exceeds the standard purchase price, then the
journal entry to record the Direct Materials Price Variance would be a credit.
3. An unfavorable labor rate variance is recorded as a debit in the Labor Rate Variance
account.
4. A favorable labor efficiency variance is recorded as a debit in the Labor Efficiency
Variance account.
5. An unfavorable labor efficiency variance is recorded as a debit in the Labor Efficiency
Variance account.
6. If the actual direct labor-hours used is less than the standard direct labor-hours allowed
for the actual output, then the journal entry to record the Labor Efficiency Variance would be a
credit.
7. A favorable labor efficiency variance would result in a debit balance in the labor efficiency
variance account.
8. An unfavorable materials quantity variance is recorded as a debit in the Materials Quantity
Variance account.
9. A favorable materials quantity variance would appear as a credit in a journal entry.
10. An unfavorable materials price variance is recorded as a debit in the Materials Price
Variance account.
11. If the actual rate per direct labor-hour exceeds the standard rate per direct labor-hour,
then the journal entry to record the Labor Rate Variance would be a debit.
12. If the actual rate per direct labor-hour is less than the standard rate per direct labor-hour,
then the journal entry to record the Labor rate variance would be a credit.
13. When the actual amount of a raw material used in production is greater than the standard
amount allowed for the actual output, the journal entry would include:
14. When the actual price to purchase a raw material on account exceeds its standard price,
the journal entry would include:
15. When the actual price to purchase a raw material on account is less than its standard
price, the journal entry would include:
16. The journal entry below:
Work in Process 25,000
Labor efficiency variance 1,200
Labor rate variance 2,000
Accrued Wages Payable 24,200
indicates that:
17. When the actual direct labor-hours exceeds the standard direct labor-hours allowed for
the actual output of the period, the journal entry would include:
18. When the actual wage rate paid to direct labor workers exceeds the standard wage rate,
the journal entry would include:
19. During the month of May, Marian Manufacturing Corporation purchased materials that
had a total standard cost of $37,000. The Materials Price Variance on these materials was $6,000
favorable. What summary journal entry would Domino make to record this purchase and variance
for May?
A) Work in Process 37,000
Materials Price Variance 6,000
Raw Materials 43,000
B) Work in Process 31,000
Materials Price Variance 6,000
Raw Materials 37,000
C) Raw Materials 37,000
Materials Price Variance 6,000
Accounts Payable 31,000
D) Raw Materials 37,000
Materials Price Variance 6,000
Accounts Payable 43,000
20. Liukko Corporation’s standard wage rate is $14.90 per direct labor-hour (DLH) and
according to the standards, each unit of output requires 2.8 DLHs. In June, 1,800 units were
produced, the actual wage rate was $15.80 per DLH, and the actual hours were 5,110 DLHs. The
Labor Efficiency Variance for June would be recorded as a:
21. Gainer Corporation’s standard wage rate is $11.70 per direct labor-hour (DLH) and
according to the standards, each unit of output requires 3.9 DLHs. In February, 7,800 units were
produced, the actual wage rate was $12.50 per DLH, and the actual hours were 29,940 DLHs.
The Labor Rate Variance for February would be recorded as a:
22. Miolen Corporation has provided the following data concerning its direct labor costs for
June:
Standard wage rate $10.40 per DLH
Standard hours 7.7 DLHs per unit
Actual wage rate $9.60 per DLH
Actual hours 70,270 DLHs
Actual output 8,500 units
The Labor Efficiency Variance for June would be recorded as a:
23. Barbu Corporation has provided the following data concerning its direct labor costs for
June:
Standard wage rate $13.20 per DLH
Standard hours 2.0 DLHs per unit
Actual wage rate $12.70 per DLH
Actual hours 12,610 DLHs
Actual output 6,500 units
The Labor Rate Variance for June would be recorded as a:
24. Results of operations for the Anderson Corporation indicated that the actual direct labor
rate for May was $9.75 while the standard rate was $10.00. The general ledger entry to record
the incurrence of direct labor cost would include:
25. Gramajo Corporation’s standard wage rate is $10.10 per direct labor-hour (DLH) and
according to the standards, each unit of output requires 3.4 DLHs. In February, 2,400 units were
produced, the actual wage rate was $9.40 per DLH, and the actual hours were 7,920 DLHs. In the
journal entry to record the incurrence of direct labor costs in February, the Work in Process entry
would consist of a:
26. Slife Corporation has provided the following data concerning its most important raw
material, compound G81N:
Standard cost, per liter $41.30
Standard quantity, liters per unit of output 2.9
Material used in production in December, liters 1,660
Actual output in December, units 700
When recording the use of materials in production, Raw Materials would be:
27. Compound K72R is used to make Munuz Corporation’s major product. The standard cost
of compound K72R is $43.90 per ounce and the standard quantity is 1.4 ounces per unit of
output. In the most recent month, 120 ounces of the compound were used to make 100 units of
the output. When recording the use of materials in production, Raw Materials would be:
28. Data concerning the direct labor costs for March of Boler Corporation appear below:
Standard wage rate $10.30 per DLH
Standard hours 3.1 DLHs per unit
Actual wage rate $10.10 per DLH
Actual hours 12,390 DLHs
Actual output 3,600 units
The journal entry to record the incurrence of direct labor costs in March would include the
following for Work in Process:
29. Marusarz Corporation has provided the following data concerning its most important raw
material, compound F55M:
Standard cost, per liter $43.60
Standard quantity, liters per unit of output 8.0
Cost of material purchased in June, per liter $43.10
Material purchased in June, liters 1,700
When recording the purchase of materials, Raw Materials would be:
30. Compound B73G is used to make Vasconcellos Corporation’s major product. The
standard cost of B73G is $27.60 per ounce and the standard quantity is 8.6 ounces per unit of
output. In the most recent month, 3,200 ounces of the raw material were purchased at a cost of
$26.70 per ounce. When recording the purchase of materials, Raw Materials would be: