Accounting Chapter 10 Chapter 10_version1 Beck a Incorporated has provided the following data concerning one of the products in its standard cost system

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Student name:__________

1) The following standards have been established for a raw material used to make product

O84:

Standard quantity of the material per unit of output 8.3

meters

Standard price of the material $ 19.50 per meter

The following data pertain to a recent month’s operations:

Actual material purchased 4,600 meters

Actual cost of material purchased $ 93,840

Actual material used in production 4,300 meters

Actual output 620 units of product O84

The direct materials purchases variance is computed when the materials are purchased.

Required:

a. What is the materials price variance for the month?

b. What is the materials quantity variance for the month?

2) Camps Incorporated has a standard cost system. The standards for direct materials for one

of its products specify 4.4 ounces of a particular input per unit of output at a standard cost of

$6.40 per ounce. The company has reported the following actual results for the product for May:

Actual output 2,900 units

Raw materials purchased 14,600 ounces

Actual cost of raw materials purchased $ 86,140

Raw materials used in production 12,770 ounces

Required:

a. Compute the materials price variance for this input for May.

b. Compute the materials quantity variance for this input for May.

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3) The standards for product V28 call for 8.1 pounds of a raw material that costs $18.50 per

pound. Last month, 2,000 pounds of the raw material were purchased for $36,600. The actual

output of the month was 220 units of product V28. A total of 1,900 pounds of the raw material

were used to produce this output. The direct materials purchases variance is computed when the

materials are purchased.

Required:

a. What is the materials price variance for the month?

b. What is the materials quantity variance for the month?

4) The following materials standards have been established for a particular product:

Standard quantity per unit of output 9.4 pounds

Standard price $16.90 per pound

The following data pertain to operations concerning the product for the last month:

Actual materials purchased 7,300 pounds

Actual cost of materials purchased $ 116,435

Actual materials used in production 7,100 pounds

Actual output 740 units

The direct materials purchases variance is computed when the materials are purchased.

Required:

a. What is the materials price variance for the month?

b. What is the materials quantity variance for the month?

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5) Mcphail Incorporated has a standard cost system. The standards for direct materials for

one of its products specify 6.6 grams of a particular input per unit of output at a standard cost of

$7.40 per gram. The company has reported the following actual results for the product for

September:

Actual output 5,700 units

Raw materials purchased 41,900 grams

Actual price of raw materials $ 7.80 per gram

Raw materials used in production 37,630 grams

Required:

a. Compute the materials price variance for this input for September.

b. Compute the materials quantity variance for this input for September.

6) Becka Incorporated has provided the following data concerning one of the products in its

standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of

Output Standard Price or Rate

Direct materials 6.7 grams $ 8.80 per gram

Direct labor 0.30 hours $ 18.20 per hour

Variable manufacturing overhead 0.30 hours $ 3.50 per hour

The company produced 2,300 units of this product in November.

Required:

a. What is the total standard cost of one unit of this product?

b. What was the standard grams allowed for the actual output of this product in November?

c. What was the standard hours allowed for the actual output of this product in November?

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7) Jungman Incorporated has provided the following data concerning one of the products in

its standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of

Output Standard Price or Rate

Direct materials 6.9 ounces $ 8.40 per ounce

Direct labor 0.50 hours $ 18.50 per hour

Variable manufacturing overhead 0.50 hours $ 5.00 per hour

The company produced 4,600 units of this product in November.

Required:

a. What is the total standard cost of one unit of this product?

b. What was the standard ounces allowed for the actual output of this product in November?

c. What was the standard hours allowed for the actual output of this product in November?

8) A partial standard cost card for the single product produced by Mercer Company is given

below:

Direct materials: 3 pounds @ $8 per pound

Direct labor: ? hours @ ? per hour

Last period the company produced 4,000 units of product. Cost and other data associated with

this production are given below:

Direct materials purchased and used, at cost $ 103,320

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Direct labor cost incurred (10,400 hours) $ 120,640

Materials price variance $ 2,520 Unfavorable

Labor efficiency variance $ 4,800 Unfavorable

Total labor variance $ 640 Unfavorable

The direct materials purchases variance is computed when the materials are purchased.

Required:

a. Determine the number of pounds of direct materials purchased and used during the period.

b. Determine the materials quantity variance.

c. Determine the standard direct labor rate per direct labor hour.

d. Determine the standard hours allowed for the production of the period.

9) Sakelaris Corporation makes a product with the following standard costs:

Standard Quantity or Hours

Standard Price or Rate

Direct materials 8.6 kilos $ 6.00 per kilo

Direct labor 0.4 hours $ 11.00 per hour

Variable overhead 0.4 hours $ 5.00 per hour

The company reported the following results concerning this product in August.

Actual output 8,400 units

Raw materials used in production 71,750 kilos

Purchases of raw materials 76,900 kilos

Actual direct labor-hours 3,320 hours

Actual cost of raw materials purchases $ 469,090

Actual direct labor cost $ 35,524

Actual variable overhead cost $ 17,928

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The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

Required:

a. Compute the materials quantity variance.

b. Compute the materials price variance.

c. Compute the labor efficiency variance.

d. Compute the labor rate variance.

e. Compute the variable overhead efficiency variance.

f. Compute the variable overhead rate variance.

10) Klacic Corporation makes a product with the following standard costs:

Inputs Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 8.7 grams $ 7.00 per gram $ 60.90

Direct labor 0.8 hours $ 12.00 per hour $ 9.60

Variable overhead 0.8 hours $ 7.00 per hour $ 5.60

The company reported the following results concerning this product in May.

Originally budgeted output 2,600 units

Actual output 2,700 units

Raw materials used in production 23,010 grams

Purchases of raw materials 25,300 grams

Actual direct labor-hours 1,980 hours

Actual cost of raw materials purchases $ 169,510

Actual direct labor cost $ 21,582

Actual variable overhead cost $ 13,662

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The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

Required:

a. Compute the materials quantity variance.

b. Compute the materials price variance.

c. Compute the labor efficiency variance.

d. Compute the labor rate variance.

e. Compute the variable overhead efficiency variance.

f. Compute the variable overhead rate variance.

11) Kropf Incorporated has provided the following data concerning one of the products in its

standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 9.40 liters $ 9.00 per liter

Direct labor 0.60 hours $ 24.70 per hour

Variable manufacturing overhead 0.60 hours $ 7.90 per hour

The company has reported the following actual results for the product for September:

Actual output 11,600 units

Raw materials purchased 110,000 liters

Actual cost of raw materials purchased $ 1,010,500

Raw materials used in production 109,070 liters

Actual direct labor-hours 6,380 hours

Actual direct labor cost $ 160,302

Actual variable overhead cost $ 45,414

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Required:

a. Compute the materials price variance for September.

b. Compute the materials quantity variance for September.

c. Compute the labor rate variance for September.

d. Compute the labor efficiency variance for September.

e. Compute the variable overhead rate variance for September.

f. Compute the variable overhead efficiency variance for September.

12) Doby Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 2.7 ounces $ 7.00 per ounce

Direct labor 0.2 hours $ 17.00 per hour

Variable overhead 0.2 hours $ 6.00 per hour

In July the company produced 4,800 units using 13,450 ounces of the direct material and 970

direct labor-hours. During the month the company purchased 14,600 ounces of the direct

material at a price of $7.20 per ounce. The actual direct labor rate was $16.20 per hour and the

actual variable overhead rate was $5.40 per hour. The materials price variance is computed when

materials are purchased. Variable overhead is applied on the basis of direct labor-hours.

Required:

a. Compute the materials quantity variance.

b. Compute the materials price variance.

c. Compute the labor efficiency variance.

d. Compute the labor rate variance.

e. Compute the variable overhead efficiency variance.

f. Compute the variable overhead rate variance.

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13) Heye Incorporated has provided the following data concerning one of the products in its

standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 6.7 grams $ 7.80 per gram

Direct labor 0.20 hours $ 19.00 per hour

Variable manufacturing overhead 0.20 hours $ 8.30 per hour

The company has reported the following actual results for the product for August:

Actual output 6,300 units

Raw materials purchased 48,100 grams

Actual price of raw materials $ 7.00 per gram

Raw materials used in production 42,200 grams

Actual direct labor-hours 1,350 hours

Actual direct labor rate $ 20.10 per hour

Actual variable overhead rate $ 9.00 per hour

Required:

a. Compute the materials price variance for August.

b. Compute the materials quantity variance for August.

c. Compute the labor rate variance for August.

d. Compute the labor efficiency variance for August.

e. Compute the variable overhead rate variance for August.

f. Compute the variable overhead efficiency variance for August.

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14) Mirabito Incorporated has provided the following data concerning one of the products in

its standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 5.0 grams $ 9.70 per gram

Direct labor 0.30 hours $ 21.20 per hour

Variable manufacturing overhead 0.30 hours $ 9.20 per hour

The company has reported the following actual results for the product for December:

Actual output 6,000 units

Raw materials purchased 31,700 grams

Actual price of raw materials $ 9.00 per gram

Actual cost of raw materials purchased $ 285,300

Raw materials used in production 29,990 grams

Actual direct labor-hours 1,760 hours

Actual direct labor rate $ 21.90 per hour

Actual direct labor cost $ 38,544

Actual variable overhead rate $ 8.80 per hour

Actual variable overhead cost $ 15,488

Required:

a. Compute the materials price variance for December.

b. Compute the materials quantity variance for December.

c. Compute the labor rate variance for December.

d. Compute the labor efficiency variance for December.

e. Compute the variable overhead rate variance for December.

f. Compute the variable overhead efficiency variance for December.

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15) Glaab Incorporated has provided the following data concerning one of the products in its

standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 4.0 liters $ 6.00 per liter

Direct labor 0.90 hours $ 18.00 per hour

Variable manufacturing overhead 0.90 hours $ 8.00 per hour

The company has reported the following actual results for the product for September:

Actual output 3,100 units

Raw materials purchased 13,200 liters

Actual price of raw materials $ 6.70 per liter

Actual cost of raw materials purchased $ 88,440

Raw materials used in production 12,410 liters

Actual direct labor-hours 3,010 hours

Actual direct labor rate $ 18.60 per hour

Actual direct labor cost $ 55,986

Actual variable overhead rate $ 8.50 per hour

Actual variable overhead cost $ 25,585

Required:

a. Compute the materials price variance for September.

b. Compute the materials quantity variance for September.

c. Compute the labor rate variance for September.

d. Compute the labor efficiency variance for September.

e. Compute the variable overhead rate variance for September.

f. Compute the variable overhead efficiency variance for September.

16) Duboise Corporation makes a product with the following standard costs:

Inputs Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 9.3 ounces $ 7.00 per ounce $ 65.10

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Direct labor 0.3 hours $ 21.00 per hour $ 6.30

Variable overhead 0.3 hours $ 2.00 per hour $ 0.60

The company reported the following results concerning this product in October.

Originally budgeted output 1,800 units

Actual output 1,900 units

Raw materials used in production 18,800 ounces

Actual direct labor-hours 580 hours

Purchases of raw materials 20,900 ounces

Actual price of raw materials $ 7.20 per ounce

Actual direct labor rate $ 21.70 per hour

Actual variable overhead rate $ 1.80 per hour

The materials price variance is recognized when materials are purchased. Variable overhead is

applied on the basis of direct labor-hours.

Required:

a. Compute the materials quantity variance.

b. Compute the materials price variance.

c. Compute the labor efficiency variance.

d. Compute the labor rate variance.

e. Compute the variable overhead efficiency variance.

f. Compute the variable overhead rate variance.

17) Fortes Incorporated has provided the following data concerning one of the products in its

standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 7.7 ounces $ 7.80 per ounce

Direct labor 0.4 hours $ 38.70 per hour

Variable manufacturing overhead 0.4 hours $ 6.10 per hour

The company has reported the following actual results for the product for April:

Actual output 7,750 units

Raw materials purchased 62,540 ounces

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Actual cost of raw materials purchased $ 372,350

Raw materials used in production 59,695 ounces

Actual direct labor-hours 2,610 hours

Actual direct labor cost $ 105,800

Actual variable overhead cost $ 14,941

Required:

a. Compute the materials price variance for April.

b. Compute the materials quantity variance for April.

c. Compute the labor rate variance for April.

d. Compute the labor efficiency variance for April.

e. Compute the variable overhead rate variance for April.

f. Compute the variable overhead efficiency variance for April.

18) Lido Company’s standard and actual costs per unit for the most recent period, during

which 500 units were actually produced, are given below:

Standard Actual

Materials:

Standard: 2 feet × $1.50 per foot $ 3.00

Actual: 1.9 feet × $1.60 per foot $ 3.04

Direct labor:

Standard: 1.5 hours × $6.00 per hour 9.00

Actual: 1.7 hours × $6.30 per hour 10.71

Variable manufacturing overhead:

Standard: 1.5 hours × $3.40 per hour 5.10

Actual: 1.7 hours × $3.00 per hour 5.10

Total unit cost $ 17.10 $ 18.85

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All of the materials purchased during the period were used in production during the period.

Required:

From the foregoing information, compute the following variances. Indicate whether the

variance is favorable (F) or unfavorable (U):

a. Material price variance.

b. Material quantity variance.

c. Labor rate variance.

d. Labor efficiency variance.

e. Variable overhead rate variance.

f. Variable overhead efficiency variance.

19) Reagen Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 3.7 liters $ 5.00 per liter

Direct labor 0.3 hours $ 21.00 per hour

Variable overhead 0.3 hours $ 7.00 per hour

The company reported the following results concerning this product in December.

Actual output 7,700 units

Raw materials used in production 26,880 liters

Actual direct labor-hours 2,270 hours

Purchases of raw materials 28,400 liters

Actual price of raw materials $ 4.90 per liter

Actual direct labor rate $ 21.50 per hour

Actual variable overhead rate $ 6.40 per hour

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The materials price variance is recognized when materials are purchased. Variable overhead is

applied on the basis of direct labor-hours.

Required:

a. Compute the materials quantity variance.

b. Compute the materials price variance.

c. Compute the labor efficiency variance.

d. Compute the labor rate variance.

e. Compute the variable overhead efficiency variance.

f. Compute the variable overhead rate variance.

20) Galeazzi Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 3.1 pounds $ 6.00 per pound

Direct labor 0.8 hours $ 18.00 per hour

Variable overhead 0.8 hours $ 6.00 per hour

In October the company produced 3,000 units using 8,380 pounds of the direct material and

2,610 direct labor-hours. During the month, the company purchased 9,500 pounds of the direct

material at a total cost of $55,100. The actual direct labor cost for the month was $48,546 and the

actual variable overhead cost was $16,965. The company applies variable overhead on the basis

of direct labor-hours. The direct materials purchases variance is computed when the materials are

purchased.

Required:

a. Compute the materials quantity variance.

b. Compute the materials price variance.

c. Compute the labor efficiency variance.

d. Compute the labor rate variance.

e. Compute the variable overhead efficiency variance.

f. Compute the variable overhead rate variance.

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21) Motts Incorporated has a standard cost system in which the standard direct labor for a

particular product is 0.50 hours at the standard rate of $21.00 per hour. The company has

reported the following actual results for the product for October:

Actual output 2,300 units

Actual direct labor-hours 1,050 hours

Actual direct labor cost $ 22,995

Required:

a. Compute the labor rate variance for October.

b. Compute the labor efficiency variance for October.

22) The following direct labor standards have been established for product O64L:

Standard direct labor-hours 7.2 hours per unit of O64L

Standard direct labor wage rate $ 12.80 per hour

The following data pertain to last month’s operations:

Actual output of product O64L 900 units

Actual direct labor-hours worked 6,600 hours

Actual direct labor wages paid $ 78,540

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Required:

a. What was the labor rate variance for the month?

b. What was the labor efficiency variance for the month?

23) Boldrin Incorporated has a standard cost system. The standards for direct labor for one of

its products specify 0.20 hours per unit at $18.70 per hour. The company has reported the

following actual results for the product for August:

Actual output 1,300 units

Actual direct labor-hours 250 hours

Actual direct labor rate $ 18.50 per hour

Required:

a. Compute the labor rate variance for August.

b. Compute the labor efficiency variance for August.

24) The following labor standards have been established for a particular product:

Standard labor hours per unit of output 4.7 hours

Standard labor rate $ 20.50 per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked 7,300 hours

Actual total labor cost $ 150,380

Actual output 1,500 units

Required:

a. What is the labor rate variance for the month?

b. What is the labor efficiency variance for the month?

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25) The standards for product G78V specify 4.7 direct labor-hours per unit at $12.50 per

direct labor-hour. Last month 1,660 units of product G78V were produced using 7,860 direct

labor-hours at a total direct labor wage cost of $94,220.

Required:

a. What was the labor rate variance for the month?

b. What was the labor efficiency variance for the month?

26) The following data for November have been provided by Hunn Corporation, a producer

of precision drills for oil exploration:

Budgeted production 3,800 drills

Standard machine-hours per drill 9.1 machine-hours

Standard indirect labor $ 8.90 per machine-hour

Standard power $ 2.50 per machine-hour

Actual production 4,000 drills

Actual machine-hours 35,450 machine-hours

Actual indirect labor $ 317,923

Actual power $ 87,510

Required:

Compute the variable overhead rate variances for indirect labor and for power for November.

Indicate whether each of the variances is favorable (F) or unfavorable (U).

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27) The following data have been provided by Lopus Corporation:

Budgeted production 4,100 units

Standard machine-hours per unit 4.2 machine-hours

Standard lubricants $ 5.70 per machine-hour

Standard supplies $ 4.40 per machine-hour

Actual production 4,400 units

Actual machine-hours 9,580 machine-hours

Actual lubricants (total) $ 56,174

Actual supplies (total) $ 41,404

Required:

Compute the variable overhead rate variances for lubricants and for supplies. Indicate whether

each of the variances is favorable (F) or unfavorable (U).

28) The following standards for variable overhead have been established for a company that

makes only one product:

Standard hours per unit of output 5.7 hours

Standard variable overhead rate $ 13.95 per hour

The following data pertain to operations for the last month:

Actual hours 9,200 hours

Actual total variable overhead cost $ 125,120

Actual output 1,600 units

Required:

a. What is the variable overhead rate variance for the month?

b. What is the variable overhead efficiency variance for the month?

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29) Creger Corporation, which makes landing gears, has provided the following data for a

recent month:

Budgeted production 1,700 gears

Standard machine-hours per gear 5.2 machine-hours

Budgeted supplies cost $ 5.80 per machine-hour

Actual production 1,600

Actual machine-hours 8,800 machine-hours

Actual supplies cost (total) $ 49,672

Required:

Determine the rate and efficiency variances for the variable overhead item supplies and

indicate whether those variances are favorable or unfavorable.

30) Balladares Incorporated has a standard cost system. Variable manufacturing overhead is

applied to products on the basis of direct labor-hours. The standard for variable manufacturing

overhead is 0.10 hours at $6.30 per hour. The company has reported the following actual results

for the product for May:

Actual output 2,000 units

Actual direct labor-hours 190 hours

Actual variable overhead cost $ 1,083

Required:

a. Compute the variable overhead rate variance for May.

b. Compute the variable overhead efficiency variance for May.

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31) Bondi Corporation makes automotive engines. For the most recent month, budgeted

production was 3,300 engines. The standard power cost is $2.40 per machine-hour. The

company’s standards indicate that each engine requires 11.1 machine-hours. Actual production

was 3,600 engines. Actual machine-hours were 38,160 machine-hours. Actual power cost totaled

$95,282.

Required:

Determine the rate and efficiency variances for the variable overhead item power cost and

indicate whether those variances are unfavorable or favorable. Indicate whether each of the

variances is favorable (F) or unfavorable (U).

32) Freytag Corporation’s variable overhead is applied on the basis of direct labor-hours. The

company has established the following variable overhead standards for product N06C:

Standard direct labor-hours 4.0 hours per unit of N06C

Standard variable overhead rate $ 6.10 per hour

The following data pertain to the most recent month’s operations during which 2,400 units of

product N06C were made:

Actual direct labor-hours worked 9,500

Actual variable overhead incurred $ 58,750

Required:

a. What was the variable overhead rate variance for the month?

b. What was the variable overhead efficiency variance for the month?

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33) Highfill Corporation’s variable overhead is applied on the basis of direct labor-hours. The

standard cost card for product D80D specifies 6.6 direct labor-hours per unit of D80D. The

standard variable overhead rate is $6.90 per direct labor-hour. During the most recent month,

1,400 units of product D80D were made and 9,400 direct labor-hours were worked.

The actual variable overhead incurred was $69,540.

Required:

a. What was the variable overhead rate variance for the month?

b. What was the variable overhead efficiency variance for the month?

34) Sade Incorporated has provided the following data concerning one of the products in its

standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Variable manufacturing overhead 0.20 hours $7.00 per hour

The company has reported the following actual results for the product for December:

Actual output 5,300 units

Actual direct labor-hours 1,160 hours

Actual variable overhead rate $ 6.80 per hour

Required:

a. Compute the variable overhead rate variance for December.

b. Compute the variable overhead efficiency variance for December.

35) The following standards have been established for a raw material used to make product

O84:

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Standard quantity of the material per unit of output 7.1 meters

Standard price of the material $18.30 per meter

The following data pertain to a recent month’s operations:

Actual material purchased 3,400 meters

Actual cost of material purchased $ 64,090

Actual material used in production 3,100 meters

Actual output 500 units of product O84

The direct materials purchases variance is computed when the materials are purchased.

Required:

a. What is the materials price variance for the month?

b. What is the materials quantity variance for the month?

36) The standards for product V28 call for 7.5 pounds of a raw material that costs $18.10 per

pound. Last month, 1,400 pounds of the raw material were purchased for $24,990. The actual

output of the month was 160 units of product V28. A total of 1,300 pounds of the raw material

were used to produce this output.

The direct materials purchases variance is computed when the materials are purchased.

Required:

a. What is the materials price variance for the month?

b. What is the materials quantity variance for the month?

37) Kropf Incorporated has provided the following data concerning one of the products in its

standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 7.4 liters $ 7.00 per liter

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Direct labor 0.70 hours $ 21.70 per hour

Variable manufacturing overhead 0.70 hours $ 5.90 per per hour

The company has reported the following actual results for the product for September:

Actual output 9,600 units

Raw materials purchased 75,000 liters

Actual cost of raw materials purchased $ 562,500

Raw materials used in production 71,050 liters

Actual direct labor-hours 6,410 hours

Actual direct labor cost $ 142,302

Actual variable overhead cost $ 34,614

Required:

a. Compute the materials price variance for September.

b. Compute the materials quantity variance for September.

c. Compute the labor rate variance for September.

d. Compute the labor efficiency variance for September.

e. Compute the variable overhead rate variance for September.

f. Compute the variable overhead efficiency variance for September.

38) Fortes Incorporated has provided the following data concerning one of the products in its

standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 8.0 ounces $ 6.10 per ounce

Direct labor 0.60 hours $19.80 per hour

Variable manufacturing overhead 0.60 hours $ 4.40 per hour

The company has reported the following actual results for the product for April:

Actual output 5,600 units

Raw materials purchased 48,200 ounces

Actual cost of raw materials purchased $279,560

Raw materials used in production 44,810 ounces

Actual direct labor-hours 3,150 hours

Actual direct labor cost $ 64,890

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Actual variable overhead cost $ 12,915

Required:

a. Compute the materials price variance for April.

b. Compute the materials quantity variance for April.

c. Compute the labor rate variance for April.

d. Compute the labor efficiency variance for April.

e. Compute the variable overhead rate variance for April.

f. Compute the variable overhead efficiency variance for April.

39) The following labor standards have been established for a particular product:

Standard labor hours per unit of output 3 hours

Standard labor rate $12 per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked 6,700 hours

Actual total labor cost $ 80,200

Actual output 2,200 units

Required:

a. What is the labor rate variance for the month?

b. What is the labor efficiency variance for the month?

40) The standards for product G78V specify 4.1 direct labor-hours per unit at $12.10 per

direct labor-hour. Last month 1,600 units of product G78V were produced using 6,600 direct

labor-hours at a total direct labor wage cost of $77,220.

Required:

a. What was the labor rate variance for the month?

b. What was the labor efficiency variance for the month?

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41) The following data for November have been provided by Hunn Corporation, a producer

of precision drills for oil exploration:

Budgeted production 3,700 drills

Standard machine-hours per drill 9.0 machine-hours

Standard indirect labor $ 8.80 per machine-hour

Standard power $ 2.40 per machine-hour

Actual production 3,900 drills

Actual machine-hours 35,350 machine-hours

Actual indirect labor $313,923

Actual power $ 83,310

Required:

Compute the variable overhead rate variances for indirect labor and for power for November.

Indicate whether each of the variances is favorable (F) or unfavorable (U).

42) The following data have been provided by Lopus Corporation:

Budgeted production 2,600 units

Standard machine-hours per unit 2.7 machine-hours

Standard lubricants $ 4.20 per machine-hour

Standard supplies $ 2.90 per machine-hour

Actual production 2,900 units

Actual machine-hours 8,080 machine-hours

Actual lubricants (total) $35,151

Actual supplies (total) $23,038

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Required:

Compute the variable overhead rate variances for lubricants and for supplies. Indicate whether

each of the variances is favorable (F) or unfavorable (U).

43) The following standards for variable overhead have been established for a company that

makes only one product:

Standard hours per unit of output 3.6 hours

Standard variable overhead rate $16.05 per hour

The following data pertain to operations for the last month:

Actual hours 5,000 hours

Actual total variable overhead cost $80,000

Actual output 1,300 units

Required:

a. What is the variable overhead rate variance for the month?

b. What is the variable overhead efficiency variance for the month?

44) Creger Corporation, which makes landing gears, has provided the following data for a

recent month:

Budgeted production 7,900 gears

Standard machine-hours per gear 9.3 machine-hours

Budgeted supplies cost $ 6.20 per machine-hour

Actual production 8,300 gears

Actual machine-hours 76,930 machine-hours

Actual supplies cost (total) $479,438

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Required:

Determine the rate and efficiency variances for the variable overhead item supplies and

indicate whether those variances are favorable or unfavorable.

45) Bondi Corporation makes automotive engines. For the most recent month, budgeted

production was 1,500 engines. The standard power cost is $3.10 per machine-hour. The

company’s standards indicate that each engine requires 9.3 machine-hours. Actual production

was 1,800 engines. Actual machine-hours were 15,860 machine-hours. Actual power cost totaled

$51,593.

Required:

Determine the rate and efficiency variances for the variable overhead item power cost and

indicate whether those variances are unfavorable or favorable.

46) Freytag Corporation’s variable overhead is applied on the basis of direct labor-hours. The

company has established the following variable overhead standards for product N06C:

Standard direct labor-hours 5.5 hours per unit of N06C

Standard variable overhead rate $4.10 per hour

The following data pertain to the most recent month’s operations during which 1,600 units of

product N06C were made:

Actual direct labor-hours worked 8,700

Actual variable overhead incurred $36,540

Required:

a. What was the variable overhead rate variance for the month?

b. What was the variable overhead efficiency variance for the month?

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47) Highfill Corporation’s variable overhead is applied on the basis of direct labor-hours. The

standard cost card for product D80D specifies 8.4 direct labor-hours per unit of D80D. The

standard variable overhead rate is $5.60 per direct labor-hour. During the most recent month, 800

units of product D80D were made and 6,800 direct labor-hours were worked.

The actual variable overhead incurred was $41,140.

Required:

a. What was the variable overhead rate variance for the month?

b. What was the variable overhead efficiency variance for the month?

48) The production department should generally be responsible for materials price variances

that resulted from:

A) purchases made in uneconomical lot-sizes.

B) rush orders arising from poor scheduling.

C) purchase of the wrong grade of materials.

D) changes in the market prices of raw materials.

49) An unfavorable materials quantity variance indicates that:

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A) actual usage of material exceeds the standard material allowed for output.

B) standard material allowed for output exceeds the actual usage of material.

C) actual material price exceeds standard price.

D) standard material price exceeds actual price.

50) The general model for calculating a quantity variance is:

A) Actual quantity of inputs used × (Actual price − Standard price).

B) Standard price × (Actual quantity of inputs used − Standard quantity allowed for

output).

C) (Actual quantity of inputs used × Actual price) − (Standard quantity allowed for

output × Standard price).

D) Actual price × (Actual quantity of inputs used − Standard quantity allowed for

output).

51) Poorly trained workers could have an unfavorable effect on which of the following

variances?

Labor Rate Variance Materials Quantity Variance

A) Yes Yes

B) Yes No

C) No Yes

D) No No

A) Choice A

B) Choice B

C) Choice C

D) Choice D

52) A favorable labor rate variance indicates that

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A) actual hours exceed standard hours.

B) standard hours exceed actual hours.

C) the actual rate exceeds the standard rate.

D) the standard rate exceeds the actual rate.

53) Variable manufacturing overhead is applied to products on the basis of standard direct

labor-hours. If the labor efficiency variance is favorable, the variable overhead efficiency

variance will be:

A) favorable.

B) unfavorable.

C) zero.

D) either favorable or unfavorable.

54) If variable manufacturing overhead is applied on the basis of direct labor-hours and the

variable overhead rate variance is favorable, then:

A) the actual variable overhead rate exceeded the standard rate.

B) the standard variable overhead rate exceeded the actual rate.

C) the actual direct labor-hours exceeded the standard direct labor-hours allowed for the

actual output.

D) the standard direct labor-hours allowed for the actual output exceeded the actual

hours.

55) Magno Cereal Corporation uses a standard cost system for its “crunchy pickle” cereal.

The materials standard for each batch of cereal produced is 1.4 pounds of pickles at a standard

cost of $3.00 per pound. During the month of August, Magno purchased 78,000 pounds of

pickles at a total cost of $253,500. Magno used all of these pickles to produce 60,000 batches of

cereal. What is Magno’s materials quantity variance for August?

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A) $1,500 Unfavorable

B) $18,000 Favorable

C) $19,500 Unfavorable

D) $54,000 Unfavorable

56) The standard cost card for one unit of a finished product shows the following:

Standard Quantity or Hours Standard Price or Rate

Direct materials 12 feet $ ? per foot

Direct labor 1.5 hours $ 12 per hour

Variable manufacturing overhead 1.5 hours $ 8 per hour

If the total standard variable cost for one unit of finished product is $78, then the standard price

per foot for direct materials is:

A) $2

B) $3

C) $4

D) $5

57) The following materials standards have been established for a particular product:

Standard quantity per unit of output 4.6 grams

Standard price $ 15.05 per gram

The following data pertain to operations concerning the product for the last month:

Actual materials purchased 3,100 grams

Actual cost of materials purchased $ 44,020

Actual materials used in production 2,400 grams

Actual output 300 units

What is the materials quantity variance for the month?

A) $9,940 U

B) $15,351 U

C) $14,484 U

D) $10,535 U

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58) Suver Corporation has a standard costing system. The following data are available for

June:

Actual quantity of direct materials purchased 50,000 pounds

Standard price of direct materials $ 6.00 per pound

Material price variance $ 5,000 Unfavorable

Material quantity variance $ 1,500 Favorable

The actual price per pound of direct materials purchased in June was:

A) $5.87 per pound

B) $6.00 per pound

C) $6.10 per pound

D) $6.13 per pound

59) Suver Corporation has a standard costing system. The following data are available for

June:

Actual quantity of direct materials purchased 24,000 pounds

Standard price of direct materials $ 6.00 per pound

Material price variance $ 6,000 Unfavorable

Material quantity variance $ 2,400 Favorable

The actual price per pound of direct materials purchased in June was:

A) $6.10 per pound

B) $5.90 per pound

C) $6.25 per pound

D) $6.30 per pound

60) Bailey Corporation manufactures orange safety suits for road workers. The following

information relates to the corporation’s purchases and use of material for April:

Material purchased 12,000 yards

Material used in production 10,000 yards

Standard material allowed for suits produced 10,800 yards

The company’s materials price variance for April was $3,000 Favorable. Its materials quantity

variance for April was $5,000 Favorable. What does the company use as a standard price per

yard of material for its safety suits?

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A) $5.75 per yard

B) $6.50 per yard

C) $6.25 per yard

D) $6.00 per yard

61) The following materials standards have been established for a particular product:

Standard quantity per unit of output 5.1 meters

Standard price $17.90 per meter

The following data pertain to operations concerning the product for the last month:

Actual materials purchased 7,700 meters

Actual cost of materials purchased $142,450

Actual materials used in production 7,300 meters

Actual output 1,400 units

What is the materials price variance for the month?

A) $2,960 U

B) $4,620 U

C) $8,100 U

D) $10,920 U

62) The following materials standards have been established for a particular product:

Standard quantity per unit of output 5.3 meters

Standard price $17.20 per meter

The following data pertain to operations concerning the product for the last month:

Actual materials purchased 8,100 meters

Actual cost of materials purchased $141,345

Actual materials used in production 7,600 meters

Actual output 1,400 units

What is the materials price variance for the month?

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A) $3,141 U

B) $2,025 U

C) $8,600 U

D) $8,725 U

63) A total of 6,850 kilograms of a raw material was purchased at a total cost of $21,920. The

materials price variance was $1,370 favorable. The standard price per kilogram for the raw

material must be:

A) $0.20

B) $3.00

C) $3.20

D) $3.40

64) The following labor standards have been established for a particular product:

Standard labor-hours per unit of output 8.9 hours

Standard labor rate $12.70 per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked 6,700 hours

Actual total labor cost $82,410

Actual output 1,000 units

What is the labor efficiency variance for the month?

A) $30,620 F

B) $30,620 U

C) $27,060 F

D) $27,940 F

65) The following labor standards have been established for a particular product:

Standard labor-hours per unit of output 8.7 hours

Standard labor rate $18.10 per hour

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The following data pertain to operations concerning the product for the last month:

Actual hours worked 3,800 hours

Actual total labor cost $67,640

Actual output 500 units

What is the labor efficiency variance for the month?

A) $9,790 F

B) $11,095 U

C) $9,955 F

D) $11,095 F

66) Zanny Electronics Corporation uses a standard cost system for the production of its water

ski radios. The direct labor standard for each radio is 0.9 hours. The standard direct labor cost per

hour is $7.20. During the month of August, Zanny’s water ski radio production used 6,600 direct

labor-hours at a total direct labor cost of $48,708. This resulted in production of 6,900 water ski

radios for August. What is Zanny’s labor rate variance for August?

A) $972 Favorable

B) $1,188 Unfavorable

C) $2,160 Favorable

D) $2,808 Unfavorable

67) The Fime Corporation uses a standard costing system. The following data have been

assembled for December:

Actual direct labor-hours worked 6,500 hours

Standard direct labor rate $10 per hour

Labor efficiency variance $3,000 Unfavorable

The standard hours allowed for December’s production is:

A) 5,900 hours

B) 6,200 hours

C) 6,500 hours

D) 6,800 hours

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68) The Fime Corporation uses a standard costing system. The following data have been

assembled for December:

Actual direct labor-hours worked 6,200 hours

Standard direct labor rate $7 per hour

Labor efficiency variance $2,100 Unfavorable

The standard hours allowed for December’s production is:

A) 5,900 hours

B) 6,500 hours

C) 6,200 hours

D) 6,000 hours

69) Piper Corporation’s standards call for 5,250 direct labor-hours to produce1,750 units of

product. During October the company worked 1,200 direct labor-hours and produced 1,200 units.

The standard hours allowed for October would be:

A) 5,250 hours

B) 1,650 hours

C) 3,600 hours

D) 4,050 hours

70) Piper Corporation’s standards call for 1,000 direct labor-hours to produce 250 units of

product. During October the company worked 1,250 direct labor-hours and produced 300 units.

The standard hours allowed for October would be:

A) 1,250 hours

B) 1,000 hours

C) 1,200 hours

D) 1,300 hours

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71) Krizun Industries makes heavy construction equipment. The standard for a particular

crane calls for 16 direct labor-hours at $16 per direct labor-hour. During a recent period1,100

cranes were made. The labor efficiency variance was $4,800 Unfavorable. How many actual

direct labor-hours were worked?

A) 22,400 direct labor-hours

B) 17,600 direct labor-hours

C) 17,900 direct labor-hours

D) 16,500 direct labor-hours

72) Krizun Industries makes heavy construction equipment. The standard for a particular

crane calls for 20 direct labor-hours at $24 per direct labor-hour. During a recent period 875

cranes were made. The labor efficiency variance was $1,200 Unfavorable. How many actual

direct labor-hours were worked?

A) 17,600 direct labor-hours

B) 17,450 direct labor-hours

C) 17,500 direct labor-hours

D) 17,550 direct labor-hours

73) The following information relates to the direct labor at Padmaja Manufacturing,

Incorporated for March:

Actual Standard

Labor cost per hour $18.00 $17.50

Labor hours per unit produced 1.5 1.4

During March, Padmaja produced 2,100 units. What is Padmaja’s labor efficiency variance for

March?

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A) $1,575 Favorable

B) $2,625 Unfavorable

C) $3,675 Unfavorable

D) $3,780 Unfavorable

74) Information on Westcott Corporation’s direct labor costs for a recent month follows:

Standard direct labor rate $ 3.75 per hour

Actual direct labor rate $ 3.50 per hour

Total standard direct labor-hours allowed for the actual production

10,000 hours

Labor efficiency variance $4,200 Unfavorable

What were the actual hours worked during the month, rounded to the nearest hour?

A) 10,714

B) 11,120

C) 11,200

D) 11,914

75) Elliott Corporation makes and sells a single product. Last period the company’s labor rate

variance was $14,400 U. During the period, the company worked 36,000 actual direct labor-

hours at an actual cost of $338,400. The standard labor rate for the product in dollars per hour is:

A) $9.40

B) $9.00

C) $8.50

D) $8.10

76) The following labor standards have been established for a particular product:

Standard labor-hours per unit of output 9.0 hours

Standard labor rate $16.60 per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked 9,600 hours

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Actual total labor cost $156,480

Actual output 950 units

What is the labor rate variance for the month?

A) $14,550 F

B) $17,115 U

C) $14,550 U

D) $2,880 F

77) The following labor standards have been established for a particular product:

Standard labor-hours per unit of output 9.0 hours

Standard labor rate $15.10 per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked 8,100 hours

Actual total labor cost $119,880

Actual output 800 units

What is the labor rate variance for the month?

A) $11,160 F

B) $13,320 U

C) $11,160 U

D) $2,430 F

78) The direct labor standards for a particular product are 4 hours of direct labor at $12.00

per direct labor-hour = $48.00. During October, 3,350 units of this product were made, which

was 150 units less than budgeted. The labor cost incurred was $159,786 and 13,450 direct labor-

hours were worked. The direct labor variances for the month were:

Labor Rate Variance Labor Efficiency Variance

A) $1,614 U $600 U

B) $1,614 U $600 F

C) $1,614 F $600 U

D) $1,614 F $600 F

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A) Choice A

B) Choice B

C) Choice C

D) Choice D

79) Viger Corporation has a standard cost system in which it applies manufacturing overhead

to products on the basis of standard machine-hours (MHs). The company has provided the

following data for the most recent month:

Budgeted level of activity 7,700 MHs

Actual level of activity 7,900 MHs

Standard variable manufacturing overhead rate $6.40 per MH

Actual total variable manufacturing overhead $48,360

What was the variable overhead rate variance for the month?

A) $1,436 Favorable

B) $920 Favorable

C) $1,280 Unfavorable

D) $2,200 Favorable

80) Viger Corporation has a standard cost system in which it applies manufacturing overhead

to products on the basis of standard machine-hours (MHs). The company has provided the

following data for the most recent month:

Budgeted level of activity 9,700 MHs

Actual level of activity 9,900 MHs

Standard variable manufacturing overhead rate $6.30 per MH

Actual total variable manufacturing overhead $60,390

What was the variable overhead rate variance for the month?

A) $2,000 Favorable

B) $720 Favorable

C) $1,260 Unfavorable

D) $1,980 Favorable

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81) Pleiss Corporation applies manufacturing overhead to products on the basis of standard

machine-hours. The company’s standard variable manufacturing overhead rate is $2.40 per

machine-hour. The actual variable manufacturing overhead cost for the month was $5,240. The

original budget for the month was based on 2,100 machine-hours. The company actually worked

2,270 machine-hours during the month. The standard hours allowed for the actual output of the

month totaled 2,280 machine-hours. What was the variable overhead efficiency variance for the

month?

A) $24 Favorable

B) $232 Favorable

C) $208 Favorable

D) $432 Unfavorable

82) The following standards for variable manufacturing overhead have been established for a

company that makes only one product:

Standard hours per unit of output 6.4 hours

Standard variable overhead rate $12.80 per hour

The following data pertain to operations for the last month:

Actual hours 2,650 hours

Actual total variable manufacturing overhead cost $34,570

Actual output 150 units

What is the variable overhead efficiency variance for the month?

A) $22,282 U

B) $21,632 U

C) $650 U

D) $12,288 F

83) The following standards for variable manufacturing overhead have been established for a

company that makes only one product:

Standard hours per unit of output 3.5 hours

Standard variable overhead rate $15.20 per hour

The following data pertain to operations for the last month:

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Actual hours 3,800 hours

Actual total variable manufacturing overhead cost $59,090

Actual output 800 units

What is the variable overhead efficiency variance for the month?

A) $15,550 U

B) $15,200 U

C) $16,530 U

D) $980 F

84) At Eady Corporation, maintenance is a variable overhead cost that is based on machine-

hours. The performance report for July showed that actual maintenance costs totaled $8,850 and

that the associated rate variance was $270 unfavorable. If 5,200 machine-hours were actually

worked during July, the standard maintenance cost per machine-hour was:

A) $1.70 per MH

B) $1.75 per MH

C) $1.65 per MH

D) $1.81 per MH

85) At Eady Corporation, maintenance is a variable overhead cost that is based on machine-

hours. The performance report for July showed that actual maintenance costs totaled $8,650 and

that the associated rate variance was $250 unfavorable. If 5,000 machine-hours were actually

worked during July, the standard maintenance cost per machine-hour was:

A) $1.73 per MH

B) $1.78 per MH

C) $1.68 per MH

D) $1.83 per MH

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86) Amirault Manufacturing Corporation has a standard cost system in which it applies

manufacturing overhead to products on the basis of standard machine-hours (MHs) at $4.00 per

MH. During the month, the actual total variable manufacturing overhead was $18,040 and the

actual level of activity for the period was 4,100 MHs. What was the variable overhead rate

variance for the month?

A) $410 Favorable

B) $1,640 Unfavorable

C) $1,640 Favorable

D) $410 Unfavorable

87) Hermansen Corporation produces large commercial doors for warehouses and other

facilities. In the most recent month, the company budgeted production of 5,100 doors. Actual

production was 5,400 doors. According to standards, each door requires 3.8 machine-hours. The

actual machine-hours for the month were 20,880 machine-hours. The standard supplies cost is

$7.90 per machine-hour. The actual supplies cost for the month was $152,063. Supplies cost is

an element of variable manufacturing overhead. The variable overhead efficiency variance for

supplies cost is:

A) $10,045 F

B) $10,045 U

C) $2,844 F

D) $2,844 U

88) The following data have been provided by Moretta Corporation, a company that produces

forklift trucks:

Budgeted production 3,400 trucks

Standard machine-hours per truck 2.9 machine-hours

Standard supplies cost $1.50 per machine-hour

Actual production 3,800 trucks

Actual machine-hours 10,930 machine-hours

Actual supplies cost (total) $17,496

Supplies cost is an element of variable manufacturing overhead. The variable overhead

efficiency variance for supplies cost is:

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A) $135 U

B) $135 F

C) $966 U

D) $966 F

89) Wadding Corporation applies manufacturing overhead to products on the basis of

standard machine-hours. For the most recent month, the company based its budget on 5,200

machine-hours. Budgeted and actual overhead costs for the month appear below:

Original Budget Based on 5,200 Machine-Hours Actual Costs

Variable overhead costs:

Supplies $ 12,880 $ 13,430

Indirect labor 49,000 50,450

Fixed overhead costs:

Supervision 21,300 20,940

Utilities 7,500 7,530

Factory depreciation 8,500 8,810

Total overhead cost $ 99,180 $ 101,160

The company actually worked 5,390 machine-hours during the month. The standard hours

allowed for the actual output were 5,380 machine-hours for the month. What was the overall

variable overhead efficiency variance for the month?

A) $980 Favorable

B) $119 Unfavorable

C) $340 Favorable

D) $385 Favorable

90) Wadding Corporation applies manufacturing overhead to products on the basis of

standard machine-hours. For the most recent month, the company based its budget on 3,600

machine-hours. Budgeted and actual overhead costs for the month appear below:

Original Budget Based on 3,600 Machine-Hours Actual Costs

Variable overhead costs:

Supplies $ 11,160 $ 11,830

Indirect labor 26,280 27,970

Fixed overhead costs:

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Supervision 19,700 19,340

Utilities 5,900 5,770

Factory depreciation 6,900 7,210

Total overhead cost $ 69,940 $ 72,120

The company actually worked 3,900 machine-hours during the month. The standard hours

allowed for the actual output were 3,890 machine-hours for the month. What was the overall

variable overhead efficiency variance for the month?

A) $760 Favorable

B) $104 Unfavorable

C) $180 Favorable

D) $656 Favorable

91) Warp Manufacturing Corporation uses a standard cost system for the production of its ski

lift chairs. Warp uses machine-hours as an overhead base. The variable manufacturing overhead

standards for each chair are 1.2 machine-hours at a standard cost of $18 per hour.

During the month of September, Warp incurred 34,000 machine-hours in the production of

32,000 ski lift chairs. The total variable manufacturing overhead cost was $649,400. What is

Warp’s variable overhead rate variance for September?

A) $37,400 Unfavorable

B) $41,800 Favorable

C) $79,200 Favorable

D) $84,040 Favorable

92) The Haney Corporation has a standard costing system. Variable manufacturing overhead

is applied on the basis of direct labor-hours. The following data are available for January:

● Actual variable manufacturing overhead: $25,500

● Actual direct labor-hours worked: 5,800

● Variable overhead rate variance: $600 Favorable

● Variable overhead efficiency variance: $2,475 Unfavorable

The standard hours allowed for January production is:

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A) 5,975 hours

B) 5,800 hours

C) 5,425 hours

D) 5,250 hours

93) The following standards for variable manufacturing overhead have been established for a

company that makes only one product:

Standard hours per unit of output 1.2 hours

Standard variable overhead rate $19.80 per hour

The following data pertain to operations for the last month:

Actual hours 2,100 hours

Actual total variable manufacturing overhead cost $40,740

Actual output 1,600 units

What is the variable overhead rate variance for the month?

A) $2,724 U

B) $3,492 U

C) $840 F

D) $768 U

94) Pyrdum Corporation produces metal telephone poles. In the most recent month, the

company budgeted production of 3,500 poles. Actual production was 3,800 poles. According to

standards, each pole requires 4.6 machine-hours. The actual machine-hours for the month were

17,800 machine-hours. The standard variable manufacturing overhead rate is $5.40 per machine-

hour. The actual variable manufacturing overhead cost for the month was $96,712. The variable

overhead efficiency variance is:

A) $2,320 U

B) $1,728 F

C) $2,320 F

D) $1,728 U

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95) Mongar Corporation applies manufacturing overhead to products on the basis of standard

machine-hours. Budgeted and actual overhead costs for the most recent month appear below:

Original Budget Actual Costs

Variable overhead costs:

Supplies $ 7,980 $ 8,230

Indirect labor 29,820 29,610

Total variable manufacturing overhead cost $ 37,800 $ 37,840

The original budget was based on 4,200 machine-hours. The company actually worked 4,350

machine-hours during the month and the standard hours allowed for the actual output were 4,190

machine-hours. What was the overall variable overhead efficiency variance for the month?

A) $130 Unfavorable

B) $950 Favorable

C) $1,310 Favorable

D) $1,440 Unfavorable

96) Gipple Corporation makes a product that uses a material with the quantity standard of 7.3

grams per unit of output and the price standard of $6.00 per gram. In January the company

produced 3,400 units using 24,870 grams of the direct material. During the month the company

purchased 27,400 grams of the direct material at $6.10 per gram. The direct materials purchases

variance is computed when the materials are purchased.

The materials quantity variance for January is:

A) $305 U

B) $300 U

C) $300 F

D) $305 F

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97) Gipple Corporation makes a product that uses a material with the quantity standard of 8.5

grams per unit of output and the price standard of $7.20 per gram. In January the company

produced 4,600 units using 26,070 grams of the direct material. During the month the company

purchased 28,600 grams of the direct material at $7.30 per gram. The direct materials purchases

variance is computed when the materials are purchased.

The materials price variance for January is:

A) $3,910 F

B) $2,860 U

C) $3,910 U

D) $2,860 F

98) Gipple Corporation makes a product that uses a material with the quantity standard of 7.3

grams per unit of output and the price standard of $6.00 per gram. In January the company

produced 3,400 units using 24,870 grams of the direct material. During the month the company

purchased 27,400 grams of the direct material at $6.10 per gram. The direct materials purchases

variance is computed when the materials are purchased.

The materials price variance for January is:

A) $2,482 F

B) $2,740 U

C) $2,482 U

D) $2,740 F

99) Luma Incorporated has provided the following data concerning one of the products in its

standard cost system.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 4.8 ounces $6.90 per ounce

The company has reported the following actual results for the product for September:

Actual output 2,100 units

Raw materials purchased 10,500 ounces

Actual price of raw materials $7.80 per ounce

Actual cost of raw materials purchased $81,900

Raw materials used in production 10,090 ounces

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The raw materials price variance for the month is closest to:

A) $9,081 U

B) $9,450 F

C) $9,450 U

D) $9,081 F

100) Luma Incorporated has provided the following data concerning one of the products in its

standard cost system.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 4.8 ounces $6.90 per ounce

The company has reported the following actual results for the product for September:

Actual output 2,100 units

Raw materials purchased 10,500 ounces

Actual price of raw materials $7.80 per ounce

Actual cost of raw materials purchased $81,900

Raw materials used in production 10,090 ounces

The raw materials quantity variance for the month is closest to:

A) $69 F

B) $78 F

C) $69 U

D) $78 U

101) Casivant Corporation makes a product that uses a material with the following direct

material standards:

Standard quantity 3.8 pounds per unit

Standard price $4.00 per pound

The company produced 7,300 units in November using 28,710 pounds of the material. During

the month, the company purchased 30,800 pounds of the direct material at a total cost of

$117,040. The direct materials purchases variance is computed when the materials are

purchased.

The materials quantity variance for November is:

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A) $3,880 F

B) $3,686 U

C) $3,686 F

D) $3,880 U

102) Casivant Corporation makes a product that uses a material with the following direct

material standards:

Standard quantity 3.8 pounds per unit

Standard price $4.00 per pound

The company produced 7,300 units in November using 28,710 pounds of the material. During

the month, the company purchased 30,800 pounds of the direct material at a total cost of

$117,040. The direct materials purchases variance is computed when the materials are

purchased.

The materials price variance for November is:

A) $5,548 U

B) $6,160 U

C) $6,160 F

D) $5,548 F

103) Devoto Incorporated has provided the following data concerning one of the products in

its standard cost system.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 6.6 grams $7.70 per gram

The company has reported the following actual results for the product for June:

Actual output 9,200 units

Raw materials purchased 64,500 grams

Actual cost of raw materials purchased $548,250

Raw materials used in production 60,710 grams

The raw materials price variance for the month is closest to:

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A) $51,600 U

B) $48,568 F

C) $51,600 F

D) $48,568 U

104) Devoto Incorporated has provided the following data concerning one of the products in

its standard cost system.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 6.6 grams $7.70 per gram

The company has reported the following actual results for the product for June:

Actual output 9,200 units

Raw materials purchased 64,500 grams

Actual cost of raw materials purchased $548,250

Raw materials used in production 60,710 grams

The raw materials quantity variance for the month is closest to:

A) $77 U

B) $85 F

C) $85 U

D) $77 F

105) The Bowden Corporation makes a single product. Only one kind of direct material is

used to make this product. The company uses a standard cost system. The company’s cost

records for June show the following data:

Number of units produced 10,000

Material price variance $8,400 Favorable

Material quantity variance $8,000 Unfavorable

Actual direct material purchased and used 21,000 pounds

Direct materials standard price $8 per pound

There were no beginning inventories of direct materials.

The standard cost of direct material for one unit of output is:

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A) $2 per unit

B) $16 per unit

C) $8 per unit

D) $10 per unit

106) The Bowden Corporation makes a single product. Only one kind of direct material is

used to make this product. The company uses a standard cost system. The company’s cost

records for June show the following data:

Number of units produced 10,000

Material price variance $8,400 Favorable

Material quantity variance $8,000 Unfavorable

Actual direct material purchased and used 21,000 pounds

Direct materials standard price $8 per pound

There were no beginning inventories of direct materials.

The actual cost of direct material was:

A) $8.12 per pound

B) $8.00 per pound

C) $7.60 per pound

D) $7.42 per pound

107) Leonesio Corporation makes a product that uses a material with the following standards:

Standard quantity 8.2 kilos per unit

Standard price $4.00 per kilo

Standard cost $32.80 per unit

The company budgeted for production of 3,100 units in August, but actual production was 3,200

units. The company used 27,600 kilos of direct material to produce this output. The company

purchased 29,000 kilos of the direct material at a total cost of $118,900. The direct materials

purchases variance is computed when the materials are purchased.

The materials quantity variance for August is:

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A) $5,576 F

B) $5,576 U

C) $5,440 F

D) $5,440 U

108) Leonesio Corporation makes a product that uses a material with the following standards:

Standard quantity 8.2 kilos per unit

Standard price $4.00 per kilo

Standard cost $32.80 per unit

The company budgeted for production of 3,100 units in August, but actual production was 3,200

units. The company used 27,600 kilos of direct material to produce this output. The company

purchased 29,000 kilos of the direct material at a total cost of $118,900. The direct materials

purchases variance is computed when the materials are purchased.

The materials price variance for August is:

A) $2,900 U

B) $2,624 U

C) $2,900 F

D) $2,624 F

109) The following materials standards have been established for a particular product:

Standard quantity per unit of output 4.4 pounds

Standard price $13.20 per pound

The following data pertain to operations concerning the product for the last month:

Actual materials purchased 4,800 pounds

Actual cost of materials purchased $62,880

Actual materials used in production 4,300 pounds

Actual output 700 units

The direct materials purchases variance is computed when the materials are purchased.

What is the materials price variance for the month?

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A) $480 F

B) $430 F

C) $430 U

D) $480 U

110) The following materials standards have been established for a particular product:

Standard quantity per unit of output 5.7 pounds

Standard price $14.50 per pound

The following data pertain to operations concerning the product for the last month:

Actual materials purchased 6,750 pounds

Actual cost of materials purchased $64,180

Actual materials used in production 6,250 pounds

Actual output 830 units

The direct materials purchases variance is computed when the materials are purchased.

What is the materials quantity variance for the month?

A) $4,754 U

B) $14,443 U

C) $22,026 U

D) $7,250 U

111) The following materials standards have been established for a particular product:

Standard quantity per unit of output 4.4 pounds

Standard price $13.20 per pound

The following data pertain to operations concerning the product for the last month:

Actual materials purchased 4,800 pounds

Actual cost of materials purchased $62,880

Actual materials used in production 4,300 pounds

Actual output 700 units

The direct materials purchases variance is computed when the materials are purchased.

What is the materials quantity variance for the month?

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A) $6,550 U

B) $15,982 U

C) $16,104 U

D) $6,600 U

112) Bumgardner Incorporated has provided the following data concerning one of the products

in its standard cost system.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 8.0 liters $5.00 per liter

The company has reported the following actual results for the product for April:

Actual output 7,400 units

Raw materials purchased 65,400 liters

Actual price of raw materials $5.70 per liter

Raw materials used in production 59,210 liters

The direct materials purchases variance is computed when the materials are purchased.

The raw materials price variance for the month is closest to:

A) $45,780 F

B) $45,780 U

C) $41,447 U

D) $41,447 F

113) Bumgardner Incorporated has provided the following data concerning one of the products

in its standard cost system.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 8.0 liters $5.00 per liter

The company has reported the following actual results for the product for April:

Actual output 7,400 units

Raw materials purchased 65,400 liters

Actual price of raw materials $5.70 per liter

Raw materials used in production 59,210 liters

The direct materials purchases variance is computed when the materials are purchased.

The raw materials quantity variance for the month is closest to:

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A) $50 U

B) $57 U

C) $57 F

D) $50 F

114) Turrubiates Corporation makes a product that uses a material with the following

standards:

Standard quantity 8.5 liters per unit

Standard price $3.00 per liter

Standard cost $25.50 per unit

The company budgeted for production of 4,300 units in April, but actual production was 4,400

units. The company used 38,000 liters of direct material to produce this output. The company

purchased 20,600 liters of the direct material at $3.1 per liter.

The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for April is:

A) $1,860 U

B) $1,800 U

C) $1,860 F

D) $1,800 F

115) Turrubiates Corporation makes a product that uses a material with the following

standards:

Standard quantity 6.5 liters per unit

Standard price $1.00 per liter

Standard cost $6.50 per unit

The company budgeted for production of 2,300 units in April, but actual production was 2,400

units. The company used 16,410 liters of direct material to produce this output. The company

purchased 18,600 liters of the direct material at $1.10 per liter.

The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for April is:

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A) $891 U

B) $810 U

C) $891 F

D) $810 F

116) Turrubiates Corporation makes a product that uses a material with the following

standards:

Standard quantity 6.5 liters per unit

Standard price $1.00 per liter

Standard cost $6.50 per unit

The company budgeted for production of 2,300 units in April, but actual production was 2,400

units. The company used 16,410 liters of direct material to produce this output. The company

purchased 18,600 liters of the direct material at $1.10 per liter.

The direct materials purchases variance is computed when the materials are purchased.

The materials price variance for April is:

A) $1,860 U

B) $1,860 F

C) $1,560 U

D) $1,560 F

117) Solly Corporation produces a product for national distribution. Standards for the product

are:

● Materials: 12 ounces per unit at 60¢ per ounce.

● Labor: 2 hours per unit at $8 per hour.

During the month of December, the company produced 1,000 units. Information for the month

follows:

● Materials: 14,000 ounces purchased and used at a total cost of $7,700.

● Labor: 2,500 hours worked at a total cost of $20,625.

The materials price variance is:

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A) $700 U

B) $600 F

C) $600 U

D) $700 F

118) Solly Corporation produces a product for national distribution. Standards for the product

are:

● Materials: 12 ounces per unit at 60¢ per ounce.

● Labor: 2 hours per unit at $8 per hour.

During the month of December, the company produced 1,000 units. Information for the month

follows:

● Materials: 14,000 ounces purchased and used at a total cost of $7,700.

● Labor: 2,500 hours worked at a total cost of $20,625.

The materials quantity variance is:

A) $1,200 U

B) $1,100 U

C) $1,100 F

D) $1,200 F

119) Solly Corporation produces a product for national distribution. Standards for the product

are:

● Materials: 12 ounces per unit at 60¢ per ounce.

● Labor: 2 hours per unit at $8 per hour.

During the month of December, the company produced 1,000 units. Information for the month

follows:

● Materials: 14,000 ounces purchased and used at a total cost of $7,700.

● Labor: 2,500 hours worked at a total cost of $20,625.

The labor rate variance is:

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A) $625 U

B) $500 F

C) $500 U

D) $625 F

120) Solly Corporation produces a product for national distribution. Standards for the product

are:

● Materials: 12 ounces per unit at 60¢ per ounce.

● Labor: 2 hours per unit at $8 per hour.

During the month of December, the company produced 1,000 units. Information for the month

follows:

● Materials: 14,000 ounces purchased and used at a total cost of $7,700.

● Labor: 2,500 hours worked at a total cost of $20,625.

The labor efficiency variance is:

A) $4,000 F

B) $4,125 F

C) $4,125 U

D) $4,000 U

121) Bulluck Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 3.5 grams $ 1.00 per gram

Direct labor 0.7 hours $ 11.00 per hour

Variable overhead 0.7 hours $ 2.00 per hour

The company reported the following results concerning this product in July.

Actual output 3,000 units

Raw materials used in production 11,370 grams

Actual direct labor-hours 1,910 hours

Purchases of raw materials 12,100 grams

Actual price of raw materials purchased $ 1.20 per gram

Actual direct labor rate $ 11.40 per hour

Actual variable overhead rate $ 2.10 per hour

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The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials quantity variance for July is:

A) $870 U

B) $1,044 U

C) $870 F

D) $1,044 F

122) Bulluck Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 3.5 grams $ 1.00 per gram

Direct labor 0.7 hours $ 11.00 per hour

Variable overhead 0.7 hours $ 2.00 per hour

The company reported the following results concerning this product in July.

Actual output 3,000 units

Raw materials used in production 11,370 grams

Actual direct labor-hours 1,910 hours

Purchases of raw materials 12,100 grams

Actual price of raw materials purchased $ 1.20 per gram

Actual direct labor rate $ 11.40 per hour

Actual variable overhead rate $ 2.10 per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials price variance for July is:

A) $2,100 U

B) $2,420 F

C) $2,100 F

D) $2,420 U

123) Bulluck Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 3.5 grams $ 1.00 per gram

Direct labor 0.7 hours $ 11.00 per hour

Variable overhead 0.7 hours $ 2.00 per hour

The company reported the following results concerning this product in July.

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Actual output 3,000 units

Raw materials used in production 11,370 grams

Actual direct labor-hours 1,910 hours

Purchases of raw materials 12,100 grams

Actual price of raw materials purchased $ 1.20 per gram

Actual direct labor rate $ 11.40 per hour

Actual variable overhead rate $ 2.10 per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The labor efficiency variance for July is:

A) $2,090 F

B) $2,166 U

C) $2,090 U

D) $2,166 F

124) Bulluck Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 3.5 grams $ 1.00 per gram

Direct labor 0.7 hours $ 11.00 per hour

Variable overhead 0.7 hours $ 2.00 per hour

The company reported the following results concerning this product in July.

Actual output 3,000 units

Raw materials used in production 11,370 grams

Actual direct labor-hours 1,910 hours

Purchases of raw materials 12,100 grams

Actual price of raw materials purchased $ 1.20 per gram

Actual direct labor rate $ 11.40 per hour

Actual variable overhead rate $ 2.10 per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The labor rate variance for July is:

A) $764 F

B) $764 U

C) $840 U

D) $840 F

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125) Bulluck Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 3.60 grams $ 1.10 per gram

Direct labor 0.80 hours $ 12.00 per hour

Variable overhead 0.80 hours $ 2.10 per hour

The company reported the following results concerning this product in July.

Actual output 3,100 units

Raw materials used in production 11,470 grams

Actual direct labor-hours 2,350 hours

Purchases of raw materials 12,200 grams

Actual price of raw materials purchased $ 1.30 per gram

Actual direct labor rate $ 11.50 per hour

Actual variable overhead rate $ 2.20 per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for July is:

A) $273 F

B) $286 U

C) $286 F

D) $273 U

126) Bulluck Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 3.5 grams $ 1.00 per gram

Direct labor 0.7 hours $ 11.00 per hour

Variable overhead 0.7 hours $ 2.00 per hour

The company reported the following results concerning this product in July.

Actual output 3,000 units

Raw materials used in production 11,370 grams

Actual direct labor-hours 1,910 hours

Purchases of raw materials 12,100 grams

Actual price of raw materials purchased $ 1.20 per gram

Actual direct labor rate $ 11.40 per hour

Actual variable overhead rate $ 2.10 per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for July is:

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A) $380 F

B) $399 U

C) $380 U

D) $399 F

127) Bulluck Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 3.5 grams $ 1.00 per gram

Direct labor 0.7 hours $ 11.00 per hour

Variable overhead 0.7 hours $ 2.00 per hour

The company reported the following results concerning this product in July.

Actual output 3,000 units

Raw materials used in production 11,370 grams

Actual direct labor-hours 1,910 hours

Purchases of raw materials 12,100 grams

Actual price of raw materials purchased $ 1.20 per gram

Actual direct labor rate $ 11.40 per hour

Actual variable overhead rate $ 2.10 per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead rate variance for July is:

A) $191 U

B) $210 U

C) $210 F

D) $191 F

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128) Ravena Labs., Incorporated makes a single product which has the following standards:

Direct materials: 2.5 ounces at $20 per ounce

Direct labor: 1.4 hours at $12.50 per hour

Variable manufacturing overhead: 1.4 hours at 3.50 per hour

Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The

following data are available for October:

● 3,750 units of compound were produced during the month.

● There was no beginning direct materials inventory.

● Direct materials purchased: 12,000 ounces for $225,000.

● The ending direct materials inventory was 2,000 ounces.

● Direct labor-hours worked: 5,600 hours at a cost of $67,200.

● Variable manufacturing overhead costs incurred amounted to $18,200.

● Variable manufacturing overhead applied to products: $18,375.

The materials price variance for October is:

A) $15,000 Unfavorable

B) $15,000 Favorable

C) $25,000 Unfavorable

D) $25,000 Favorable

129) Ravena Labs., Incorporated makes a single product which has the following standards:

Direct materials: 2.5 ounces at $20 per ounce

Direct labor: 1.4 hours at $12.50 per hour

Variable manufacturing overhead: 1.4 hours at 3.50 per hour

Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The

following data are available for October:

● 3,750 units of compound were produced during the month.

● There was no beginning direct materials inventory.

● Direct materials purchased: 12,000 ounces for $225,000.

● The ending direct materials inventory was 2,000 ounces.

● Direct labor-hours worked: 5,600 hours at a cost of $67,200.

● Variable manufacturing overhead costs incurred amounted to $18,200.

● Variable manufacturing overhead applied to products: $18,375.

The materials quantity variance for October is:

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A) $52,500 Unfavorable

B) $52,500 Favorable

C) $12,500 Unfavorable

D) $12,500 Favorable

130) Ravena Labs., Incorporated makes a single product which has the following standards:

Direct materials: 2.5 ounces at $20 per ounce

Direct labor: 1.4 hours at $12.50 per hour

Variable manufacturing overhead: 1.4 hours at 3.50 per hour

Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The

following data are available for October:

● 3,750 units of compound were produced during the month.

● There was no beginning direct materials inventory.

● Direct materials purchased: 12,000 ounces for $225,000.

● The ending direct materials inventory was 2,000 ounces.

● Direct labor-hours worked: 5,600 hours at a cost of $67,200.

● Variable manufacturing overhead costs incurred amounted to $18,200.

● Variable manufacturing overhead applied to products: $18,375.

The labor efficiency variance for October is:

A) $1,400 Favorable

B) $1,900 Unfavorable

C) $3,750 Favorable

D) $4,375 Unfavorable

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131) Ravena Labs., Incorporated makes a single product which has the following standards:

Direct materials: 2.5 ounces at $20 per ounce

Direct labor: 1.4 hours at $12.50 per hour

Variable manufacturing overhead: 1.4 hours at 3.50 per hour

Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The

following data are available for October:

● 3,750 units of compound were produced during the month.

● There was no beginning direct materials inventory.

● Direct materials purchased: 12,000 ounces for $225,000.

● The ending direct materials inventory was 2,000 ounces.

● Direct labor-hours worked: 5,600 hours at a cost of $67,200.

● Variable manufacturing overhead costs incurred amounted to $18,200.

● Variable manufacturing overhead applied to products: $18,375.

The variable overhead rate variance for October is:

A) $1,400 Favorable

B) $1,900 Unfavorable

C) $3,750 Favorable

D) $4,375 Unfavorable

132) Ravena Labs., Incorporated makes a single product which has the following standards:

Direct materials: 2.5 ounces at $20 per ounce

Direct labor: 1.4 hours at $12.50 per hour

Variable manufacturing overhead: 1.4 hours at 3.50 per hour

Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The

following data are available for October:

● 3,750 units of compound were produced during the month.

● There was no beginning direct materials inventory.

● Direct materials purchased: 12,000 ounces for $225,000.

● The ending direct materials inventory was 2,000 ounces.

● Direct labor-hours worked: 5,600 hours at a cost of $67,200.

● Variable manufacturing overhead costs incurred amounted to $18,200.

● Variable manufacturing overhead applied to products: $18,375.

The variable overhead efficiency variance for October is:

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A) $1,400 Favorable

B) $1,225 Unfavorable

C) $1,900 Unfavorable

D) $2,700 Favorable

133) Pippin Incorporated has provided the following data concerning one of the products in its

standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 5.0 grams $ 7.00 per gram

Direct labor 0.30 hours $21.30 per hour

Variable manufacturing overhead 0.30 hours $ 9.60 per hour

The company has reported the following actual results for the product for June:

Actual output 8,500 units

Raw materials purchased 48,100 grams

Actual price of raw materials $ 7.70 per gram

Raw materials used in production 42,490 grams

Actual direct labor-hours 2,300 hours

Actual direct labor rate $21.70 per hour

Actual variable overhead rate $ 9.80 per hour

The raw materials price variance for the month is closest to:

A) $33,670 U

B) $29,743 F

C) $29,743 U

D) $33,670 F

134) Pippin Incorporated has provided the following data concerning one of the products in its

standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 5.0 grams $ 7.00 per gram

Direct labor 0.30 hours $21.30 per hour

Variable manufacturing overhead 0.30 hours $ 9.60 per hour

Version 1 69

The company has reported the following actual results for the product for June:

Actual output 8,500 units

Raw materials purchased 48,100 grams

Actual price of raw materials $ 7.70 per gram

Raw materials used in production 42,490 grams

Actual direct labor-hours 2,300 hours

Actual direct labor rate $21.70 per hour

Actual variable overhead rate $ 9.80 per hour

The raw materials quantity variance for the month is closest to:

A) $77 F

B) $70 U

C) $77 U

D) $70 F

135) Pippin Incorporated has provided the following data concerning one of the products in its

standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 5.0 grams $ 7.00 per gram

Direct labor 0.30 hours $21.30 per hour

Variable manufacturing overhead 0.30 hours $ 9.60 per hour

The company has reported the following actual results for the product for June:

Actual output 8,500 units

Raw materials purchased 48,100 grams

Actual price of raw materials $ 7.70 per gram

Raw materials used in production 42,490 grams

Actual direct labor-hours 2,300 hours

Actual direct labor rate $21.70 per hour

Actual variable overhead rate $ 9.80 per hour

The labor rate variance for the month is closest to:

A) $1,020 F

B) $1,020 U

C) $920 F

D) $920 U

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136) Pippin Incorporated has provided the following data concerning one of the products in its

standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 5.0 grams $ 7.00 per gram

Direct labor 0.30 hours $21.30 per hour

Variable manufacturing overhead 0.30 hours $ 9.60 per hour

The company has reported the following actual results for the product for June:

Actual output 8,500 units

Raw materials purchased 48,100 grams

Actual price of raw materials $ 7.70 per gram

Raw materials used in production 42,490 grams

Actual direct labor-hours 2,300 hours

Actual direct labor rate $21.70 per hour

Actual variable overhead rate $ 9.80 per hour

The labor efficiency variance for the month is closest to:

A) $5,425 U

B) $5,425 F

C) $5,325 U

D) $5,325 F

137) Pippin Incorporated has provided the following data concerning one of the products in its

standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 5.0 grams $ 7.00 per gram

Direct labor 0.30 hours $21.30 per hour

Variable manufacturing overhead 0.30 hours $ 9.60 per hour

The company has reported the following actual results for the product for June:

Actual output 8,500 units

Raw materials purchased 48,100 grams

Actual price of raw materials $ 7.70 per gram

Raw materials used in production 42,490 grams

Actual direct labor-hours 2,300 hours

Actual direct labor rate $21.70 per hour

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Actual variable overhead rate $ 9.80 per hour

The variable overhead rate variance for the month is closest to:

A) $460 U

B) $510 F

C) $510 U

D) $460 F

138) Pippin Incorporated has provided the following data concerning one of the products in its

standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 5.0 grams $ 7.00 per gram

Direct labor 0.30 hours $ 21.30 per hour

Variable manufacturing overhead 0.30 hours $ 9.60 per hour

The company has reported the following actual results for the product for June:

Actual output 8,500 units

Raw materials purchased 48,100 grams

Actual price of raw materials $ 7.70 per gram

Raw materials used in production 42,490 grams

Actual direct labor-hours 2,300 hours

Actual direct labor rate $ 21.70 per hour

Actual variable overhead rate $ 9.80 per hour

The variable overhead efficiency variance for the month is closest to:

A) $2,450 F

B) $2,400 U

C) $2,400 F

D) $2,450 U

139) Dirickson Incorporated has provided the following data concerning one of the products in

its standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 7.6 ounces $ 9.40 per ounce

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Direct labor 0.10 hours $ 18.00 per hour

Variable manufacturing overhead 0.10 hours $ 5.30 per hour

The company has reported the following actual results for the product for July:

Actual output 7,600 units

Raw materials purchased 63,000 ounces

Actual cost of raw materials purchased $ 541,800

Raw materials used in production 57,750 ounces

Actual direct labor-hours 820 hours

Actual direct labor cost $ 16,072

Actual variable overhead cost $ 4,592

The raw materials price variance for the month is closest to:

A) $46,200 U

B) $50,400 F

C) $46,200 F

D) $50,400 U

140) Dirickson Incorporated has provided the following data concerning one of the products in

its standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 7.6 ounces $ 9.40 per ounce

Direct labor 0.10 hours $ 18.00 per hour

Variable manufacturing overhead 0.10 hours $ 5.30 per hour

The company has reported the following actual results for the product for July:

Actual output 7,600 units

Raw materials purchased 63,000 ounces

Actual cost of raw materials purchased $ 541,800

Raw materials used in production 57,750 ounces

Actual direct labor-hours 820 hours

Actual direct labor cost $ 16,072

Actual variable overhead cost $ 4,592

The raw materials quantity variance for the month is closest to:

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A) $86 U

B) $86 F

C) $94 U

D) $94 F

141) Dirickson Incorporated has provided the following data concerning one of the products in

its standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 7.6 ounces $ 9.40 per ounce

Direct labor 0.10 hours $ 18.00 per hour

Variable manufacturing overhead 0.10 hours $ 5.30 per hour

The company has reported the following actual results for the product for July:

Actual output 7,600 units

Raw materials purchased 63,000 ounces

Actual cost of raw materials purchased $ 541,800

Raw materials used in production 57,750 ounces

Actual direct labor-hours 820 hours

Actual direct labor cost $ 16,072

Actual variable overhead cost $ 4,592

The labor rate variance for the month is closest to:

A) $1,312 F

B) $1,312 U

C) $1,216 U

D) $1,216 F

142) Dirickson Incorporated has provided the following data concerning one of the products in

its standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 7.6 ounces $9.40 per ounce

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Direct labor 0.10 hours $18.00 per hour

Variable manufacturing overhead 0.10 hours $5.30 per hour

The company has reported the following actual results for the product for July:

Actual output 7,600 units

Raw materials purchased 63,000 ounces

Actual cost of raw materials purchased $541,800

Raw materials used in production 57,750 ounces

Actual direct labor-hours 820 hours

Actual direct labor cost $16,072

Actual variable overhead cost $4,592

The labor efficiency variance for the month is closest to:

A) $1,080 F

B) $1,176 F

C) $1,080 U

D) $1,176 U

143) Dirickson Incorporated has provided the following data concerning one of the products in

its standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 7.6 ounces $9.40 per ounce

Direct labor 0.10 hours $18.00 per hour

Variable manufacturing overhead 0.10 hours $5.30 per hour

The company has reported the following actual results for the product for July:

Actual output 7,600 units

Raw materials purchased 63,000 ounces

Actual cost of raw materials purchased $541,800

Raw materials used in production 57,750 ounces

Actual direct labor-hours 820 hours

Actual direct labor cost $16,072

Actual variable overhead cost $4,592

The variable overhead rate variance for the month is closest to:

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A) $228 F

B) $246 U

C) $246 F

D) $228 U

144) Dirickson Incorporated has provided the following data concerning one of the products in

its standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 7.6 ounces $9.40 per ounce

Direct labor 0.10 hours $18.00 per hour

Variable manufacturing overhead 0.10 hours $5.30 per hour

The company has reported the following actual results for the product for July:

Actual output 7,600 units

Raw materials purchased 63,000 ounces

Actual cost of raw materials purchased $541,800

Raw materials used in production 57,750 ounces

Actual direct labor-hours 820 hours

Actual direct labor cost $16,072

Actual variable overhead cost $4,592

The variable overhead efficiency variance for the month is closest to:

A) $336 F

B) $318 F

C) $336 U

D) $318 U

145) Handerson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 8.5 kilos $6.00 per kilo

Direct labor 0.4 hours $20.00 per hour

Variable overhead 0.4 hours $6.00 per hour

The company reported the following results concerning this product in August.

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Actual output 3,200 units

Raw materials used in production 29,030 kilos

Purchases of raw materials 31,600 kilos

Actual direct labor-hours 1,160 hours

Actual cost of raw materials purchases $195,920

Actual direct labor cost $22,736

Actual variable overhead cost $7,540

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials quantity variance for August is:

A) $10,980 F

B) $11,346 U

C) $10,980 U

D) $11,346 F

146) Handerson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 8.5 kilos $6.00 per kilo

Direct labor 0.4 hours $20.00 per hour

Variable overhead 0.4 hours $6.00 per hour

The company reported the following results concerning this product in August.

Actual output 3,200 units

Raw materials used in production 29,030 kilos

Purchases of raw materials 31,600 kilos

Actual direct labor-hours 1,160 hours

Actual cost of raw materials purchases $195,920

Actual direct labor cost $22,736

Actual variable overhead cost $7,540

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials price variance for August is:

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A) $5,440 F

B) $6,320 F

C) $5,440 U

D) $6,320 U

147) Handerson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 8.5 kilos $6.00 per kilo

Direct labor 0.4 hours $20.00 per hour

Variable overhead 0.4 hours $6.00 per hour

The company reported the following results concerning this product in August.

Actual output 3,200 units

Raw materials used in production 29,030 kilos

Purchases of raw materials 31,600 kilos

Actual direct labor-hours 1,160 hours

Actual cost of raw materials purchases $195,920

Actual direct labor cost $22,736

Actual variable overhead cost $7,540

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The labor efficiency variance for August is:

A) $2,400 U

B) $2,400 F

C) $2,352 F

D) $2,352 U

148) Handerson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 8.5 kilos $6.00 per kilo

Direct labor 0.4 hours $20.00 per hour

Variable overhead 0.4 hours $6.00 per hour

The company reported the following results concerning this product in August.

Actual output 3,200 units

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Raw materials used in production 29,030 kilos

Purchases of raw materials 31,600 kilos

Actual direct labor-hours 1,160 hours

Actual cost of raw materials purchases $195,920

Actual direct labor cost $22,736

Actual variable overhead cost $7,540

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The labor rate variance for August is:

A) $464 F

B) $512 U

C) $464 U

D) $512 F

149) Handerson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 8.5 kilos $6.00 per kilo

Direct labor 0.4 hours $20.00 per hour

Variable overhead 0.4 hours $6.00 per hour

The company reported the following results concerning this product in August.

Actual output 3,200 units

Raw materials used in production 29,030 kilos

Purchases of raw materials 31,600 kilos

Actual direct labor-hours 1,160 hours

Actual cost of raw materials purchases $195,920

Actual direct labor cost $22,736

Actual variable overhead cost $7,540

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for August is:

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A) $720 U

B) $720 F

C) $780 U

D) $780 F

150) Handerson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 8.8 kilos $6.30 per kilo

Direct labor 0.5 hours $23.00 per hour

Variable overhead 0.5 hours $6.30 per hour

The company reported the following results concerning this product in August.

Actual output 3,500 units

Raw materials used in production 29,330 kilos

Purchases of raw materials 31,900 kilos

Actual direct labor-hours 1,190 hours

Actual cost of raw materials purchases $198,920

Actual direct labor cost $23,036

Actual variable overhead cost $7,840

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead rate variance for August is:

A) $504 F

B) $343 U

C) $504 U

D) $343 F

151) Handerson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 8.5 kilos $6.00 per kilo

Direct labor 0.4 hours $20.00 per hour

Variable overhead 0.4 hours $6.00 per hour

The company reported the following results concerning this product in August.

Actual output 3,200 units

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Raw materials used in production 29,030 kilos

Purchases of raw materials 31,600 kilos

Actual direct labor-hours 1,160 hours

Actual cost of raw materials purchases $195,920

Actual direct labor cost $22,736

Actual variable overhead cost $7,540

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead rate variance for August is:

A) $640 F

B) $580 U

C) $640 U

D) $580 F

152) Kartman Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.5 pounds $7.00 per pound $45.50

Direct labor 0.6 hours $24.00 per hour $14.40

Variable overhead 0.6 hours $4.00 per hour $2.40

In June the company’s budgeted production was 3,400 units but the actual production was 3,500

units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to

produce this output. During the month, the company purchased 25,400 pounds of the direct

material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable

overhead cost was $8,931.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials quantity variance for June is:

A) $4,200 F

B) $4,200 U

C) $4,020 U

D) $4,020 F

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153) Kartman Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.5 pounds $7.00 per pound $45.50

Direct labor 0.6 hours $24.00 per hour $14.40

Variable overhead 0.6 hours $4.00 per hour $2.40

In June the company’s budgeted production was 3,400 units but the actual production was 3,500

units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to

produce this output. During the month, the company purchased 25,400 pounds of the direct

material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable

overhead cost was $8,931.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials price variance for June is:

A) $7,620 U

B) $6,825 U

C) $6,825 F

D) $7,620 F

154) Kartman Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.5 pounds $7.00 per pound $45.50

Direct labor 0.6 hours $24.00 per hour $14.40

Variable overhead 0.6 hours $4.00 per hour $2.40

In June the company’s budgeted production was 3,400 units but the actual production was 3,500

units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to

produce this output. During the month, the company purchased 25,400 pounds of the direct

material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable

overhead cost was $8,931.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The labor efficiency variance for June is:

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A) $4,560 F

B) $4,560 U

C) $4,731 U

D) $4,731 F

155) Kartman Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.5 pounds $7.00 per pound $45.50

Direct labor 0.6 hours $24.00 per hour $14.40

Variable overhead 0.6 hours $4.00 per hour $2.40

In June the company’s budgeted production was 3,400 units but the actual production was 3,500

units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to

produce this output. During the month, the company purchased 25,400 pounds of the direct

material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable

overhead cost was $8,931.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The labor rate variance for June is:

A) $1,890 F

B) $2,061 U

C) $2,061 F

D) $1,890 U

156) Kartman Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.5 pounds $7.00 per pound $45.50

Direct labor 0.6 hours $24.00 per hour $ 14.40

Variable overhead 0.6 hours $ 4.00 per hour $ 2.40

Version 1 83

In June the company’s budgeted production was 3,400 units but the actual production was 3,500

units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to

produce this output. During the month, the company purchased 25,400 pounds of the direct

material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable

overhead cost was $8,931.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for June is:

A) $760 F

B) $760 U

C) $741 F

D) $741 U

157) Kartman Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 7.9 pounds $ 8.40 per pound $ 66.36

Direct labor 0.4 hours $38.00 per hour $ 15.20

Variable overhead 0.4 hours $5.40 per hour $ 2.16

In June the company’s budgeted production was 4,800 units but the actual production was 4,900

units. The company used 23,550 pounds of the direct material and 2,430 direct labor-hours to

produce this output. During the month, the company purchased 26,800 pounds of the direct

material at a cost of $184,180. The actual direct labor cost was $58,421 and the actual variable

overhead cost was $12,541.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead rate variance for June is:

A) $469 U

B) $581 F

C) $581 U

D) $469 F

158) Kartman Corporation makes a product with the following standard costs:

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Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.5 pounds $ 7.00 per pound $ 45.50

Direct labor 0.6 hours $ 24.00 per hour $ 14.40

Variable overhead 0.6 hours $ 4.00 per hour $ 2.40

In June the company’s budgeted production was 3,400 units but the actual production was 3,500

units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to

produce this output. During the month, the company purchased 25,400 pounds of the direct

material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable

overhead cost was $8,931.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead rate variance for June is:

A) $210 U

B) $229 F

C) $229 U

D) $210 F

159) Grub Chemical Corporation has developed cost standards for the production of its new

chocolate, ChocO. The variable cost standards below relate to each 10 gallon batch of ChocO:

Standard Cost Per Batch

Milk chocolate (2 pounds × $0.85 per pound) $ 1.70

Direct labor (1.25 hours × $12.00 per hour) $ 15.00

Variable overhead (1.25 hours × $44.00 per hour) $ 55.00

Variable manufacturing overhead at Grub is applied based on direct labor-hours. The actual

results for last month were as follows:

Number of batches produced 3,800

Direct labor-hours incurred 4,510

Pounds of chocolate purchased 9,000

Pounds of chocolate used in production 7,880

Cost of chocolate purchased $7,200

Direct labor cost $53,218

Variable manufacturing overhead cost $205,700

What is ChocO’s materials (milk chocolate) price variance?

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A) $56 Favorable

B) $450 Favorable

C) $502 Unfavorable

D) $740 Unfavorable

160) Grub Chemical Corporation has developed cost standards for the production of its new

chocolate, ChocO. The variable cost standards below relate to each 10 gallon batch of ChocO:

Standard Cost Per Batch

Milkchocolate (2 pounds × $0.85 per pound) $ 1.70

Direct labor (1.25 hours × $12.00 per hour) $ 15.00

Variable overhead (1.25 hours × $44.00 per hour) $ 55.00

Variable manufacturing overhead at Grub is applied based on direct labor-hours. The actual

results for last month were as follows:

Number of batches produced 3,800

Direct labor-hours incurred 4,510

Pounds of chocolate purchased 9,000

Pounds of chocolate used in production 7,880

Cost of chocolate purchased $ 7,200

Direct labor cost $ 53,218

Variable manufacturing overhead cost $ 205,700

What is ChocO’s materials (milk chocolate) quantity variance?

A) $238 Unfavorable

B) $476 Unfavorable

C) $952 Favorable

D) $1,190 Unfavorable

161) Grub Chemical Corporation has developed cost standards for the production of its new

chocolate, ChocO. The variable cost standards below relate to each 10 gallon batch of ChocO:

Standard Cost Per Batch

Milk chocolate (2 pounds × $0.85 per pound) $ 1.70

Direct labor (1.25 hours × $12.00 per hour) $ 15.00

Variable overhead (1.25 hours × $44.00 per hour) $ 55.00

Variable manufacturing overhead at Grub is applied based on direct labor-hours. The actual

results for last month were as follows:

Number of batches produced 3,800

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Direct labor-hours incurred 4,510

Pounds of chocolate purchased 9,000

Pounds of chocolate used in production 7,880

Cost of chocolate purchased $ 7,200

Direct labor cost $ 53,218

Variable manufacturing overhead cost $ 205,700

What is ChocO’s labor rate variance?

A) $902 Favorable

B) $2,880 Favorable

C) $3,782 Favorable

D) $14,432 Favorable

162) Grub Chemical Corporation has developed cost standards for the production of its new

chocolate, ChocO. The variable cost standards below relate to each 10 gallon batch of ChocO:

Standard Cost Per Batch

Milk chocolate (2 pounds × $0.85 per pound) $ 1.70

Direct labor (1.25 hours × $12.00 per hour) $ 15.00

Variable overhead (1.25 hours × $44.00 per hour) $ 55.00

Variable manufacturing overhead at Grub is applied based on direct labor-hours. The actual

results for last month were as follows:

Number of batches produced 3,800

Direct labor-hours incurred 4,510

Pounds of chocolate purchased 9,000

Pounds of chocolate used in production 7,880

Cost of chocolate purchased $ 7,200

Direct labor cost $ 53,218

Variable manufacturing overhead cost $ 205,700

What is ChocO’s variable overhead efficiency variance?

A) $7,260 Unfavorable

B) $10,560 Favorable

C) $31,240 Unfavorable

D) $39,050 Unfavorable

Version 1 87

163) Fluegge Incorporated has provided the following data concerning one of the products in

its standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 5.7 liters $ 5.40 per liter

Direct labor 0.70 hours $ 20.60 per hour

Variable manufacturing overhead 0.70 hours $ 5.50 per hour

The company has reported the following actual results for the product for December:

Actual output 4,100 units

Raw materials purchased 25,100 liters

Actual price of raw materials $ 4.80 per liter

Actual cost of raw materials purchased $ 120,480

Raw materials used in production 23,360 liters

Actual direct labor-hours 2,700 hours

Actual direct labor rate $ 21.20 per hour

Actual direct labor cost $ 57,240

Actual variable overhead rate $ 5.90 per hour

Actual variable overhead cost $ 15,930

The raw materials price variance for the month is closest to:

A) $15,060 U

B) $14,016 F

C) $15,060 F

D) $14,016 U

164) Fluegge Incorporated has provided the following data concerning one of the products in

its standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 5.7 liters $ 5.40 per liter

Direct labor 0.70 hours $ 20.60 per hour

Variable manufacturing overhead 0.70 hours $ 5.50 per hour

The company has reported the following actual results for the product for December:

Actual output 4,100 units

Raw materials purchased 25,100 liters

Actual price of raw materials $ 4.80 per liter

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Actual cost of raw materials purchased $ 120,480

Raw materials used in production 23,360 liters

Actual direct labor-hours 2,700 hours

Actual direct labor rate $ 21.20 per hour

Actual direct labor cost $ 57,240

Actual variable overhead rate $ 5.90 per hour

Actual variable overhead cost $ 15,930

The raw materials quantity variance for the month is closest to:

A) $48 U

B) $54 U

C) $54 F

D) $48 F

165) Fluegge Incorporated has provided the following data concerning one of the products in

its standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 5.7 liters $ 5.40 per liter

Direct labor 0.70 hours $ 20.60 per hour

Variable manufacturing overhead 0.70 hours $ 5.50 per hour

The company has reported the following actual results for the product for December:

Actual output 4,100 units

Raw materials purchased 25,100 liters

Actual price of raw materials $ 4.80 per liter

Actual cost of raw materials purchased $ 120,480

Raw materials used in production 23,360 liters

Actual direct labor-hours 2,700 hours

Actual direct labor rate $ 21.20 per hour

Actual direct labor cost $ 57,240

Actual variable overhead rate $ 5.90 per hour

Actual variable overhead cost $ 15,930

The labor rate variance for the month is closest to:

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A) $1,722 U

B) $1,722 F

C) $1,620 F

D) $1,620 U

166) Fluegge Incorporated has provided the following data concerning one of the products in

its standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 5.7 liters $ 5.40 per liter

Direct labor 0.70 hours $ 20.60 per hour

Variable manufacturing overhead 0.70 hours $ 5.50 per hour

The company has reported the following actual results for the product for December:

Actual output 4,100 units

Raw materials purchased 25,100 liters

Actual price of raw materials $ 4.80 per liter

Actual cost of raw materials purchased $ 120,480

Raw materials used in production 23,360 liters

Actual direct labor-hours 2,700 hours

Actual direct labor rate $ 21.20 per hour

Actual direct labor cost $ 57,240

Actual variable overhead rate $ 5.90 per hour

Actual variable overhead cost $ 15,930

The labor efficiency variance for the month is closest to:

A) $3,604 U

B) $3,604 F

C) $3,502 F

D) $3,502 U

167) Fluegge Incorporated has provided the following data concerning one of the products in

its standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Version 1 90

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 5.7 liters $ 5.40 per liter

Direct labor 0.70 hours $ 20.60 per hour

Variable manufacturing overhead 0.70 hours $ 5.50 per hour

The company has reported the following actual results for the product for December:

Actual output 4,100 units

Raw materials purchased 25,100 liters

Actual price of raw materials $ 4.80 per liter

Actual cost of raw materials purchased $ 120,480

Raw materials used in production 23,360 liters

Actual direct labor-hours 2,700 hours

Actual direct labor rate $ 21.20 per hour

Actual direct labor cost $ 57,240

Actual variable overhead rate $ 5.90 per hour

Actual variable overhead cost $ 15,930

The variable overhead rate variance for the month is closest to:

A) $1,080 U

B) $1,080 F

C) $1,148 U

D) $1,148 F

168) Fluegge Incorporated has provided the following data concerning one of the products in

its standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 5.7 liters $ 5.40 per liter

Direct labor 0.70 hours $ 20.60 per hour

Variable manufacturing overhead 0.70 hours $ 5.50 per hour

The company has reported the following actual results for the product for December:

Actual output 4,100 units

Raw materials purchased 25,100 liters

Actual price of raw materials $ 4.80 per liter

Actual cost of raw materials purchased $ 120,480

Raw materials used in production 23,360 liters

Actual direct labor-hours 2,700 hours

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Actual direct labor rate $ 21.20 per hour

Actual direct labor cost $ 57,240

Actual variable overhead rate $ 5.90 per hour

Actual variable overhead cost $ 15,930

The variable overhead efficiency variance for the month is closest to:

A) $1,003 U

B) $935 U

C) $1,003 F

D) $935 F

169) Miguez Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 2.3 liters $ 7.00 per liter $ 16.10

Direct labor 0.7 hours $ 22.00 per hour $ 15.40

Variable overhead 0.7 hours $ 2.00 per hour $ 1.40

The company budgeted for production of 2,600 units in September, but actual production was

2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to

produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter.

The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90

per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials quantity variance for September is:

A) $2,170 U

B) $2,232 U

C) $2,170 F

D) $2,232 F

170) Miguez Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 2.3 liters $ 7.00 per liter $ 16.10

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Direct labor 0.7 hours $ 22.00 per hour $ 15.40

Variable overhead 0.7 hours $ 2.00 per hour $ 1.40

The company budgeted for production of 2,600 units in September, but actual production was

2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to

produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter.

The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90

per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials price variance for September is:

A) $1,150 U

B) $1,150 F

C) $1,160 F

D) $1,160 U

171) Miguez Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 2.3 liters $ 7.00 per liter $ 16.10

Direct labor 0.7 hours $ 22.00 per hour $ 15.40

Variable overhead 0.7 hours $ 2.00 per hour $ 1.40

The company budgeted for production of 2,600 units in September, but actual production was

2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to

produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter.

The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90

per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The labor efficiency variance for September is:

A) $1,540 F

B) $1,687 U

C) $1,687 F

D) $1,540 U

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172) Miguez Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 2.3 liters $ 7.00 per liter $ 16.10

Direct labor 0.7 hours $ 22.00 per hour $ 15.40

Variable overhead 0.7 hours $ 2.00 per hour $ 1.40

The company budgeted for production of 2,600 units in September, but actual production was

2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to

produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter.

The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90

per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The labor rate variance for September is:

A) $3,675 F

B) $3,528 U

C) $3,528 F

D) $3,675 U

173) Miguez Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 2.3 liters $ 7.00 per liter $ 16.10

Direct labor 0.7 hours $ 22.00 per hour $ 15.40

Variable overhead 0.7 hours $ 2.00 per hour $ 1.40

The company budgeted for production of 2,600 units in September, but actual production was

2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to

produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter.

The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90

per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for September is:

Version 1 94

A) $140 U

B) $140 F

C) $133 F

D) $133 U

174) Miguez Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 2.6 liters $ 7.30 per liter $ 18.98

Direct labor 0.5 hours $ 25.00 per hour $ 12.50

Variable overhead 0.5 hours $ 2.30 per hour $ 1.15

The company budgeted for production of 2,900 units in September, but actual production was

2,800 units. The company used 5,740 liters of direct material and 1,710 direct labor-hours to

produce this output. The company purchased 6,100 liters of the direct material at $7.50 per liter.

The actual direct labor rate was $27.10 per hour and the actual variable overhead rate was $2.20

per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead rate variance for September is:

A) $140 F

B) $171 U

C) $171 F

D) $140 U

175) Miguez Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 2.3 liters $ 7.00 per liter $ 16.10

Direct labor 0.7 hours $ 22.00 per hour $ 15.40

Variable overhead 0.7 hours $ 2.00 per hour $ 1.40

Version 1 95

The company budgeted for production of 2,600 units in September, but actual production was

2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to

produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter.

The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90

per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead rate variance for September is:

A) $175 F

B) $168 U

C) $168 F

D) $175 U

176) Milar Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 7.7 pounds $ 4.00 per pound

Direct labor 0.1 hours $ 20.00 per hour

Variable overhead 0.1 hours $ 4.00 per hour

In January the company produced 2,000 units using 16,060 pounds of the direct material and 210

direct labor-hours. During the month, the company purchased 16,900 pounds of the direct

material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable

overhead cost was $756.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials quantity variance for January is:

A) $2,640 U

B) $2,574 F

C) $2,640 F

D) $2,574 U

177) Milar Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 2.0 pounds $ 7.00 per pound

Direct labor 0.7 hours $ 15.00 per hour

Version 1 96

Variable overhead 0.7 hours $ 5.00 per hour

In January the company produced 4,500 units using 10,130 pounds of the direct material and

2,110 direct labor-hours. During the month, the company purchased 10,700 pounds of the direct

material at a cost of $76,580. The actual direct labor cost was $38,255 and the actual variable

overhead cost was $11,956.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials price variance for January is:

A) $1,540 U

B) $1,680 F

C) $1,680 U

D) $1,540 F

178) Milar Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 7.7 pounds $ 4.00 per pound

Direct labor 0.1 hours $ 20.00 per hour

Variable overhead 0.1 hours $ 4.00 per hour

In January the company produced 2,000 units using 16,060 pounds of the direct material and 210

direct labor-hours. During the month, the company purchased 16,900 pounds of the direct

material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable

overhead cost was $756.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials price variance for January is:

A) $1,690 U

B) $1,540 F

C) $1,540 U

D) $1,690 F

179) Milar Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 7.7 pounds $ 4.00 per pound

Direct labor 0.1 hours $ 20.00 per hour

Version 1 97

Variable overhead 0.1 hours $ 4.00 per hour

In January the company produced 2,000 units using 16,060 pounds of the direct material and 210

direct labor-hours. During the month, the company purchased 16,900 pounds of the direct

material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable

overhead cost was $756.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The labor efficiency variance for January is:

A) $200 U

B) $213 U

C) $200 F

D) $213 F

180) Milar Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 11.5 pounds $ 11.00 per pound

Direct labor 0.8 hours $ 35.00 per hour

Variable overhead 0.8 hours $ 16.50 per hour

In January the company produced 3,460 units using13,840 pounds of the direct material and

2,888 direct labor-hours. During the month, the company purchased 14,600 pounds of the direct

material at a cost of $35,100. The actual direct labor cost was $100,665 and the actual variable

overhead cost was $45,700.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The labor rate variance for January is:

A) $415 F

B) $415 U

C) $3,785 U

D) $3,785 F

181) Milar Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 7.7 pounds $ 4.00 per pound

Direct labor 0.1 hours $ 20.00 per hour

Version 1 98

Variable overhead 0.1 hours $ 4.00 per hour

In January the company produced 2,000 units using 16,060 pounds of the direct material and 210

direct labor-hours. During the month, the company purchased 16,900 pounds of the direct

material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable

overhead cost was $756.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The labor rate variance for January is:

A) $260 U

B) $273 U

C) $260 F

D) $273 F

182) Milar Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 7.7 pounds $ 4.00 per pound

Direct labor 0.1 hours $ 20.00 per hour

Variable overhead 0.1 hours $ 4.00 per hour

In January the company produced 2,000 units using 16,060 pounds of the direct material and 210

direct labor-hours. During the month, the company purchased 16,900 pounds of the direct

material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable

overhead cost was $756.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for January is:

A) $36 U

B) $40 F

C) $36 F

D) $40 U

183) Milar Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 7.7 pounds $ 4.00 per pound

Direct labor 0.1 hours $ 20.00 per hour

Version 1 99

Variable overhead 0.1 hours $ 4.00 per hour

In January the company produced 2,000 units using 16,060 pounds of the direct material and 210

direct labor-hours. During the month, the company purchased 16,900 pounds of the direct

material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable

overhead cost was $756.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead rate variance for January is:

A) $84 U

B) $80 F

C) $84 F

D) $80 U

184) Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 7.0 ounces $ 4.00 per ounce $ 28.00

Direct labor 0.7 hours $ 14.00 per hour $ 9.80

Variable overhead 0.7 hours $ 9.00 per hour $ 6.30

The company reported the following results concerning this product in June.

Originally budgeted output 2,400 units

Actual output 2,900 units

Raw materials used in production 21,000 ounces

Purchases of raw materials 21,900 ounces

Actual direct labor-hours 4,000 hours

Actual cost of raw materials purchases $ 40,900

Actual direct labor cost $ 12,400

Actual variable overhead cost $ 3,200

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials quantity variance for June is:

Version 1 100

A) $2,800 F

B) $1,307 U

C) $2,800 U

D) $1,307 F

185) Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.5 ounces $ 2.00 per ounce $ 13.00

Direct labor 0.2 hours $ 23.00 per hour $ 4.60

Variable overhead 0.2 hours $ 6.00 per hour $ 1.20

The company reported the following results concerning this product in June.

Originally budgeted output 2,700 units

Actual output 2,800 units

Raw materials used in production 19,380 ounces

Purchases of raw materials 21,400 ounces

Actual direct labor-hours 500 hours

Actual cost of raw materials purchases $ 40,660

Actual direct labor cost $ 12,050

Actual variable overhead cost $ 3,100

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials quantity variance for June is:

A) $2,242 U

B) $2,242 F

C) $2,360 U

D) $2,360 F

186) Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 7.5 ounces $ 3.00 per ounce $ 22.50

Direct labor 0.9 hours $ 19.00 per hour $ 17.10

Version 1 101

Variable overhead 0.9 hours $ 8.00 per hour $ 7.20

The company reported the following results concerning this product in June.

Originally budgeted output 2,900 units

Actual output 2,500 units

Raw materials used in production 20,700 ounces

Purchases of raw materials 21,800 ounces

Actual direct labor-hours 4,700 hours

Actual cost of raw materials purchases $ 42,300

Actual direct labor cost $ 12,900

Actual variable overhead cost $ 3,450

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials price variance for June is:

A) $23,100 F

B) $23,100 U

C) $1,962 F

D) $1,962 U

187) Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.5 ounces $ 2.00 per ounce $ 13.00

Direct labor 0.2 hours $ 23.00 per hour $ 4.60

Variable overhead 0.2 hours $ 6.00 per hour $ 1.20

The company reported the following results concerning this product in June.

Originally budgeted output 2,700 units

Actual output 2,800 units

Raw materials used in production 19,380 ounces

Purchases of raw materials 21,400 ounces

Actual direct labor-hours 500 hours

Actual cost of raw materials purchases $ 40,660

Actual direct labor cost $ 12,050

Actual variable overhead cost $ 3,100

Version 1 102

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials price variance for June is:

A) $2,140 U

B) $2,140 F

C) $1,820 U

D) $1,820 F

188) Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 5.6 ounces $ 3.00 per ounce $ 16.80

Direct labor 0.3 hours $ 10.00 per hour $ 3.00

Variable overhead 0.3 hours $ 7.00 per hour $ 2.10

The company reported the following results concerning this product in June.

Originally budgeted output 4,000 units

Actual output 3,500 units

Raw materials used in production 20,600 ounces

Purchases of raw materials 21,700 ounces

Actual direct labor-hours 540 hours

Actual cost of raw materials purchases $ 42,700

Actual direct labor cost $ 14,000

Actual variable overhead cost $ 4,000

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The labor efficiency variance for June is:

A) $6,600 F

B) $5,100 U

C) $6,600 U

D) $5,100 F

Version 1 103

189) Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.5 ounces $ 2.00 per ounce $ 13.00

Direct labor 0.2 hours $ 23.00 per hour $ 4.60

Variable overhead 0.2 hours $ 6.00 per hour $ 1.20

The company reported the following results concerning this product in June.

Originally budgeted output 2,700 units

Actual output 2,800 units

Raw materials used in production 19,380 ounces

Purchases of raw materials 21,400 ounces

Actual direct labor-hours 500 hours

Actual cost of raw materials purchases $ 40,660

Actual direct labor cost $ 12,050

Actual variable overhead cost $ 3,100

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The labor efficiency variance for June is:

A) $1,380 U

B) $1,380 F

C) $1,446 F

D) $1,446 U

190) Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 5.2 ounces $ 3.00 per ounce $ 15.60

Direct labor 0.3 hours $ 14.00 per hour $ 4.20

Variable overhead 0.3 hours $ 5.00 per hour $ 1.50

The company reported the following results concerning this product in June.

Originally budgeted output 4,400 units

Actual output 4,600 units

Raw materials used in production 20,800 ounces

Purchases of raw materials 21,900 ounces

Actual direct labor-hours 580 hours

Actual cost of raw materials purchases $ 39,500

Actual direct labor cost $ 14,400

Version 1 104

Actual variable overhead cost $ 4,200

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The labor rate variance for June is:

A) $1,137 F

B) $6,280 F

C) $1,137 U

D) $6,280 U

191) Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.5 ounces $ 2.00 per ounce $ 13.00

Direct labor 0.2 hours $ 23.00 per hour $ 4.60

Variable overhead 0.2 hours $ 6.00 per hour $ 1.20

The company reported the following results concerning this product in June.

Originally budgeted output 2,700 units

Actual output 2,800 units

Raw materials used in production 19,380 ounces

Purchases of raw materials 21,400 ounces

Actual direct labor-hours 500 hours

Actual cost of raw materials purchases $ 40,660

Actual direct labor cost $ 12,050

Actual variable overhead cost $ 3,100

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The labor rate variance for June is:

A) $616 F

B) $616 U

C) $550 F

D) $550 U

Version 1 105

192) Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 7.3 ounces $ 3.00 per ounce $ 21.90

Direct labor 0.2 hours $ 17.00 per hour $ 3.40

Variable overhead 0.2 hours $ 6.00 per hour $ 1.20

The company reported the following results concerning this product in June.

Originally budgeted output 2,700 units

Actual output 2,800 units

Raw materials used in production 20,500 ounces

Purchases of raw materials 21,600 ounces

Actual direct labor-hours 480 hours

Actual cost of raw materials purchases $ 42,100

Actual direct labor cost $ 12,700

Actual variable overhead cost $ 3,350

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for June is:

A) $496 F

B) $480 U

C) $496 U

D) $480 F

193) Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.5 ounces $ 2.00 per ounce $ 13.00

Direct labor 0.2 hours $ 23.00 per hour $ 4.60

Variable overhead 0.2 hours $ 6.00 per hour $ 1.20

The company reported the following results concerning this product in June.

Originally budgeted output 2,700 units

Actual output 2,800 units

Raw materials used in production 19,380 ounces

Purchases of raw materials 21,400 ounces

Actual direct labor-hours 500 hours

Actual cost of raw materials purchases $ 40,660

Actual direct labor cost $ 12,050

Version 1 106

Actual variable overhead cost $ 3,100

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for June is:

A) $372 F

B) $372 F

C) $372 U

D) $372 U

E) $360 F

F) $360 F

G) $360 U

H) $360 U

194) Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 5.7 ounces $ 2.00 per ounce $ 11.40

Direct labor 0.2 hours $ 11.00 per hour $ 2.20

Variable overhead 0.2 hours $ 6.00 per hour $ 1.20

The company reported the following results concerning this product in June.

Originally budgeted output 3,900 units

Actual output 3,500 units

Raw materials used in production 22,500 ounces

Purchases of raw materials 21,800 ounces

Actual direct labor-hours 530 hours

Actual cost of raw materials purchases $ 42,600

Actual direct labor cost $ 13,900

Actual variable overhead cost $ 3,850

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead rate variance for June is:

Version 1 107

A) $682 U

B) $682 F

C) $670 F

D) $670 U

195) Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.5 ounces $ 2.00 per ounce $ 13.00

Direct labor 0.2 hours $ 23.00 per hour $ 4.60

Variable overhead 0.2 hours $ 6.00 per hour $ 1.20

The company reported the following results concerning this product in June.

Originally budgeted output 2,700 units

Actual output 2,800 units

Raw materials used in production 19,380 ounces

Purchases of raw materials 21,400 ounces

Actual direct labor-hours 500 hours

Actual cost of raw materials purchases $ 40,660

Actual direct labor cost $ 12,050

Actual variable overhead cost $ 3,100

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead rate variance for June is:

A) $100 U

B) $112 U

C) $100 F

D) $112 F

196) Doogan Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 2.0 grams $ 7.00 per gram

Direct labor 0.8 hours $ 16.00 per hour

Variable overhead 0.8 hours $ 4.00 per hour

Version 1 108

The company produced 4,400 units in January using 10,140 grams of direct material and 2,120

direct labor-hours. During the month, the company purchased 10,710 grams of the direct material

at $7.40 per gram. The actual direct labor rate was $16.95 per hour and the actual variable

overhead rate was $3.70 per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials quantity variance for January is:

A) $9,380 F

B) $9,916 U

C) $9,916 F

D) $9,380 U

197) Doogan Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 7.4 grams $ 2.00 per gram

Direct labor 0.5 hours $ 20.00 per hour

Variable overhead 0.5 hours $ 7.00 per hour

The company produced 5,200 units in January using 39,310 grams of direct material and 2,380

direct labor-hours. During the month, the company purchased 44,400 grams of the direct material

at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable

overhead rate was $6.80 per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials quantity variance for January is:

A) $1,411 F

B) $1,660 F

C) $1,660 U

D) $1,411 U

198) Doogan Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 7.4 grams $ 2.00 per gram

Direct labor 0.5 hours $ 20.00 per hour

Variable overhead 0.5 hours $ 7.00 per hour

Version 1 109

The company produced 5,200 units in January using 39,310 grams of direct material and 2,380

direct labor-hours. During the month, the company purchased 44,400 grams of the direct material

at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable

overhead rate was $6.80 per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials price variance for January is:

A) $13,320 U

B) $13,320 F

C) $11,544 F

D) $11,544 U

199) Doogan Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 7.4 grams $ 2.00 per gram

Direct labor 0.5 hours $ 20.00 per hour

Variable overhead 0.5 hours $ 7.00 per hour

The company produced 5,200 units in January using 39,310 grams of direct material and 2,380

direct labor-hours. During the month, the company purchased 44,400 grams of the direct material

at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable

overhead rate was $6.80 per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The labor efficiency variance for January is:

A) $4,246 U

B) $4,246 F

C) $4,400 U

D) $4,400 F

200) Doogan Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 7.4 grams $ 2.00 per gram

Direct labor 0.5 hours $ 20.00 per hour

Variable overhead 0.5 hours $ 7.00 per hour

Version 1 110

The company produced 5,200 units in January using 39,310 grams of direct material and 2,380

direct labor-hours. During the month, the company purchased 44,400 grams of the direct material

at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable

overhead rate was $6.80 per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The labor rate variance for January is:

A) $1,666 F

B) $1,820 F

C) $1,666 U

D) $1,820 U

201) Doogan Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 7.4 grams $ 2.00 per gram

Direct labor 0.5 hours $ 20.00 per hour

Variable overhead 0.5 hours $ 7.00 per hour

The company produced 5,200 units in January using 39,310 grams of direct material and 2,380

direct labor-hours. During the month, the company purchased 44,400 grams of the direct material

at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable

overhead rate was $6.80 per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for January is:

A) $1,496 F

B) $1,496 U

C) $1,540 U

D) $1,540 F

202) Doogan Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 8.6 grams $ 3.20 per gram

Direct labor 0.7 hours $ 32.00 per hour

Variable overhead 0.7 hours $ 8.20 per hour

Version 1 111

The company produced 6,400 units in January using 40,510 grams of direct material and 2,500

direct labor-hours. During the month, the company purchased 45,600 grams of the direct material

at $2.90 per gram. The actual direct labor rate was $31.30 per hour and the actual variable

overhead rate was $8.00 per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead rate variance for January is:

A) $500 U

B) $896 F

C) $500 F

D) $896 U

203) Doogan Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials 7.4 grams $ 2.00 per gram

Direct labor 0.5 hours $ 20.00 per hour

Variable overhead 0.5 hours $ 7.00 per hour

The company produced 5,200 units in January using 39,310 grams of direct material and 2,380

direct labor-hours. During the month, the company purchased 44,400 grams of the direct material

at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable

overhead rate was $6.80 per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead rate variance for January is:

A) $476 U

B) $520 F

C) $476 F

D) $520 U

204) Majer Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.3 ounces $ 2.00 per ounce $ 12.60

Direct labor 0.3 hours $ 10.00 per hour $ 3.00

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Variable overhead 0.3 hours $ 4.00 per hour $ 1.20

The company reported the following results concerning this product in February.

Originally budgeted output 4,900 units

Actual output 5,000 units

Raw materials used in production 30,000 ounces

Actual direct labor-hours 1,920 hours

Purchases of raw materials 32,400 ounces

Actual price of raw materials $ 12.90 per ounce

Actual direct labor rate $ 22.40 per hour

Actual variable overhead rate $ 4.00 per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials quantity variance for February is:

A) $3,000 F

B) $2,937 F

C) $3,000 U

D) $2,937 U

205) Majer Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.4 ounces $ 3.00 per ounce $ 19.20

Direct labor 0.4 hours $ 13.00 per hour $ 5.20

Variable overhead 0.4 hours $ 5.00 per hour $ 2.00

The company reported the following results concerning this product in February.

Originally budgeted output 4,800 units

Actual output 4,900 units

Raw materials used in production 30,230 ounces

Actual direct labor-hours 1,910 hours

Purchases of raw materials 32,600 ounces

Actual price of raw materials $ 2.90 per ounce

Actual direct labor rate $ 12.40 per hour

Actual variable overhead rate $ 4.90 per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials quantity variance for February is:

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A) $3,277 F

B) $3,390 U

C) $3,390 F

D) $3,277 U

206) Majer Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 2.0 ounces $ 7.00 per ounce $ 14.00

Direct labor 0.8 hours $ 13.00 per hour $ 10.40

Variable overhead 0.8 hours $ 5.50 per hour $ 4.40

The company reported the following results concerning this product in February.

Originally budgeted output 7,200 units

Actual output 7,000 units

Raw materials used in production 10,800 ounces

Actual direct labor-hours 5,800 hours

Purchases of raw materials 12,400 ounces

Actual price of raw materials $ 6.75 per ounce

Actual direct labor rate $ 14.40 per hour

Actual variable overhead rate $ 5.90 per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials price variance for February is:

A) $25,100 U

B) $25,100 F

C) $3,100 F

D) $3,100 U

207) Majer Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.4 ounces $ 3.00 per ounce $ 19.20

Direct labor 0.4 hours $ 13.00 per hour $ 5.20

Variable overhead 0.4 hours $ 5.00 per hour $ 2.00

The company reported the following results concerning this product in February.

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Originally budgeted output 4,800 units

Actual output 4,900 units

Raw materials used in production 30,230 ounces

Actual direct labor-hours 1,910 hours

Purchases of raw materials 32,600 ounces

Actual price of raw materials $ 2.90 per ounce

Actual direct labor rate $ 12.40 per hour

Actual variable overhead rate $ 4.90 per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The materials price variance for February is:

A) $3,136 F

B) $3,260 F

C) $3,136 U

D) $3,260 U

208) Majer Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.4 ounces $ 3.00 per ounce $ 19.20

Direct labor 0.4 hours $ 13.00 per hour $ 5.20

Variable overhead 0.4 hours $ 5.00 per hour $ 2.00

The company reported the following results concerning this product in February.

Originally budgeted output 4,800 units

Actual output 4,900 units

Raw materials used in production 30,230 ounces

Actual direct labor-hours 1,910 hours

Purchases of raw materials 32,600 ounces

Actual price of raw materials $ 2.90 per ounce

Actual direct labor rate $ 12.40 per hour

Actual variable overhead rate $ 4.90 per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The labor efficiency variance for February is:

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A) $650 U

B) $650 F

C) $620 F

D) $620 U

209) Majer Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.4 ounces $ 3.00 per ounce $ 19.20

Direct labor 0.4 hours $ 13.00 per hour $ 5.20

Variable overhead 0.4 hours $ 5.00 per hour $ 2.00

The company reported the following results concerning this product in February.

Originally budgeted output 4,800 units

Actual output 4,900 units

Raw materials used in production 30,230 ounces

Actual direct labor-hours 1,910 hours

Purchases of raw materials 32,600 ounces

Actual price of raw materials $ 2.90 per ounce

Actual direct labor rate $ 12.40 per hour

Actual variable overhead rate $ 4.90 per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The labor rate variance for February is:

A) $1,146 U

B) $1,176 U

C) $1,176 F

D) $1,146 F

210) Majer Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.7 ounces $ 3.00 per ounce $ 20.10

Direct labor 0.7 hours $ 18.00 per hour $ 12.60

Variable overhead 0.7 hours $ 3.00 per hour $ 2.10

The company reported the following results concerning this product in February.

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Originally budgeted output 5,700 units

Actual output 8,500 units

Raw materials used in production 30,800 ounces

Actual direct labor-hours 1,980 hours

Purchases of raw materials 31,800 ounces

Actual price of raw materials $ 92.90 per ounce

Actual direct labor rate $ 102.40 per hour

Actual variable overhead rate $ 4.80 per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for February is:

A) $11,910 U

B) $11,860 F

C) $11,910 F

D) $11,860 U

211) Majer Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.4 ounces $ 3.00 per ounce $ 19.20

Direct labor 0.4 hours $ 13.00 per hour $ 5.20

Variable overhead 0.4 hours $ 5.00 per hour $ 2.00

The company reported the following results concerning this product in February.

Originally budgeted output 4,800 units

Actual output 4,900 units

Raw materials used in production 30,230 ounces

Actual direct labor-hours 1,910 hours

Purchases of raw materials 32,600 ounces

Actual price of raw materials $ 2.90 per ounce

Actual direct labor rate $ 12.40 per hour

Actual variable overhead rate $ 4.90 per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for February is:

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A) $245 U

B) $245 F

C) $250 F

D) $250 U

212) Majer Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.7 ounces $ 3.00 per ounce $ 20.10

Direct labor 0.7 hours $ 18.00 per hour $ 12.60

Variable overhead 0.7 hours $ 3.00 per hour $ 2.10

The company reported the following results concerning this product in February.

Originally budgeted output 5,700 units

Actual output 8,500 units

Raw materials used in production 30,800 ounces

Actual direct labor-hours 1,980 hours

Purchases of raw materials 33,200 ounces

Actual price of raw materials $ 92.90 per ounce

Actual direct labor rate $ 102.40 per hour

Actual variable overhead rate $ 2.10 per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead rate variance for February is:

A) $1,782 F

B) $1,787 F

C) $1,782 U

D) $1,787 U

213) Majer Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct materials 6.4 ounces $ 3.00 per ounce $ 19.20

Direct labor 0.4 hours $ 13.00 per hour $ 5.20

Variable overhead 0.4 hours $ 5.00 per hour $ 2.00

The company reported the following results concerning this product in February.

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Originally budgeted output 4,800 units

Actual output 4,900 units

Raw materials used in production 30,230 ounces

Actual direct labor-hours 1,910 hours

Purchases of raw materials 32,600 ounces

Actual price of raw materials $ 2.90 per ounce

Actual direct labor rate $ 12.40 per hour

Actual variable overhead rate $ 4.90 per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials

purchases variance is computed when the materials are purchased.

The variable overhead rate variance for February is:

A) $191 U

B) $191 F

C) $196 U

D) $196 F

214) Puvo, Incorporated, manufactures a single product in which variable manufacturing

overhead is assigned on the basis of standard direct labor-hours. The company uses a standard

cost system and has established the following standards for one unit of product:

Standard Quantity Standard Price or Rate Standard Cost

Direct materials 5.8 pounds $ 0.60 per pound $ 3.48

Direct labor 0.5 hours $ 33.50 per hour $ 16.75

Variable manufacturing overhead 0.5 hours $ 8.50 per hour $

4.25

During March, the following activity was recorded by the company:

● The company produced 2,400 units during the month.

● A total of 19,400 pounds of material were purchased at a cost of $13,580.

● There was no beginning inventory of materials on hand to start the month; at the end of the

month, 3,620 pounds of material remained in the warehouse.

● During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour.

● Variable manufacturing overhead costs during March totaled $14,061.

The direct materials purchases variance is computed when the materials are purchased.

The materials price variance for March is:

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A) $1,940 U

B) $1,940 F

C) $1,750 F

D) $1,750 U

215) Puvo, Incorporated, manufactures a single product in which variable manufacturing

overhead is assigned on the basis of standard direct labor-hours. The company uses a standard

cost system and has established the following standards for one unit of product:

Standard Quantity Standard Price or Rate Standard Cost

Direct materials 2.0 pounds $ 4.75 per pound $ 9.50

Direct labor 0.5 hours $ 13.00 per hour $ 6.50

Variable manufacturing overhead 0.5 hours $ 3.00 per hour $

1.50

During March, the following activity was recorded by the company:

● The company produced 4,400 units during the month.

● A total of 12,300 pounds of material were purchased at a cost of $34,440.

● There was no beginning inventory of materials on hand to start the month; at the end of the

month, 2,460 pounds of material remained in the warehouse.

● During March, 2,400 direct labor-hours were worked at a rate of $13.50 per hour.

● Variable manufacturing overhead costs during March totaled $3,800.

The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for March is:

A) $4,940 F

B) $18,640 F

C) $18,640 U

D) $4,940 U

216) Puvo, Incorporated, manufactures a single product in which variable manufacturing

overhead is assigned on the basis of standard direct labor-hours. The company uses a standard

cost system and has established the following standards for one unit of product:

Standard Quantity Standard Price or Rate Standard Cost

Direct materials 5.8 pounds $ 0.60 per pound $ 3.48

Direct labor 0.5 hours $ 33.50 per hour $ 16.75

Version 1 120

Variable manufacturing overhead 0.5 hours $ 8.50 per hour $

4.25

During March, the following activity was recorded by the company:

● The company produced 2,400 units during the month.

● A total of 19,400 pounds of material were purchased at a cost of $13,580.

● There was no beginning inventory of materials on hand to start the month; at the end of the

month, 3,620 pounds of material remained in the warehouse.

● During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour.

● Variable manufacturing overhead costs during March totaled $14,061.

The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for March is:

A) $1,116 F

B) $1,302 F

C) $1,302 U

D) $1,116 U

217) Puvo, Incorporated, manufactures a single product in which variable manufacturing

overhead is assigned on the basis of standard direct labor-hours. The company uses a standard

cost system and has established the following standards for one unit of product:

Standard Quantity Standard Price or Rate Standard Cost

Direct materials 5.8 pounds $ 0.60 per pound $ 3.48

Direct labor 0.5 hours $ 33.50 per hour $ 16.75

Variable manufacturing overhead 0.5 hours $ 8.50 per hour $

4.25

During March, the following activity was recorded by the company:

● The company produced 2,400 units during the month.

● A total of 19,400 pounds of material were purchased at a cost of $13,580.

● There was no beginning inventory of materials on hand to start the month; at the end of the

month, 3,620 pounds of material remained in the warehouse.

● During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour.

● Variable manufacturing overhead costs during March totaled $14,061.

The direct materials purchases variance is computed when the materials are purchased.

The labor rate variance for March is:

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A) $4,120 U

B) $3,270 U

C) $4,120 F

D) $3,270 F

218) Puvo, Incorporated, manufactures a single product in which variable manufacturing

overhead is assigned on the basis of standard direct labor-hours. The company uses a standard

cost system and has established the following standards for one unit of product:

Standard Quantity Standard Price or Rate Standard Cost

Direct materials 5.8 pounds $ 0.60 per pound $ 3.48

Direct labor 0.5 hours $ 33.50 per hour $ 16.75

Variable manufacturing overhead 0.5 hours $ 8.50 per hour $

4.25

During March, the following activity was recorded by the company:

● The company produced 2,400 units during the month.

● A total of 19,400 pounds of material were purchased at a cost of $13,580.

● There was no beginning inventory of materials on hand to start the month; at the end of the

month, 3,620 pounds of material remained in the warehouse.

● During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour.

● Variable manufacturing overhead costs during March totaled $14,061.

The direct materials purchases variance is computed when the materials are purchased.

The labor efficiency variance for March is:

A) $3,040 U

B) $3,685 U

C) $3,685 F

D) $3,040 F

219) Puvo, Incorporated, manufactures a single product in which variable manufacturing

overhead is assigned on the basis of standard direct labor-hours. The company uses a standard

cost system and has established the following standards for one unit of product:

Standard Quantity Standard Price or Rate Standard Cost

Direct materials 5.9 pounds $ .70 per pound $ 4.13

Direct labor 0.5 hours $ 34.50 per hour $ 17.25

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Variable manufacturing overhead 0.5 hours $ 8.60 per hour $

4.30

During March, the following activity was recorded by the company:

● The company produced 2,500 units during the month.

● A total of 19,500 pounds of material were purchased at a cost of $13,680.

● There was no beginning inventory of materials on hand to start the month; at the end of the

month, 3,720 pounds of material remained in the warehouse.

● During March, 1,100 direct labor-hours were worked at a rate of $31.50 per hour.

● Variable manufacturing overhead costs during March totaled $14,161.

The direct materials purchases variance is computed when the materials are purchased.

The variable overhead rate variance for March is:

A) $4,701 F

B) $5,046 U

C) $5,046 F

D) $4,701 U

220) Puvo, Incorporated, manufactures a single product in which variable manufacturing

overhead is assigned on the basis of standard direct labor-hours. The company uses a standard

cost system and has established the following standards for one unit of product:

Standard Quantity Standard Price or Rate Standard Cost

Direct materials 5.8 pounds $ 0.60 per pound $ 3.48

Direct labor 0.5 hours $ 33.50 per hour $ 16.75

Variable manufacturing overhead 0.5 hours $ 8.50 per hour $

4.25

During March, the following activity was recorded by the company:

● The company produced 2,400 units during the month.

● A total of 19,400 pounds of material were purchased at a cost of $13,580.

● There was no beginning inventory of materials on hand to start the month; at the end of the

month, 3,620 pounds of material remained in the warehouse.

● During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour.

● Variable manufacturing overhead costs during March totaled $14,061.

The direct materials purchases variance is computed when the materials are purchased.

The variable overhead rate variance for March is:

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A) $4,796 F

B) $5,120 U

C) $5,120 F

D) $4,796 U

221) Puvo, Incorporated, manufactures a single product in which variable manufacturing

overhead is assigned on the basis of standard direct labor-hours. The company uses a standard

cost system and has established the following standards for one unit of product:

Standard Quantity Standard Price or Rate Standard Cost

Direct materials 5.8 pounds $ 0.60 per pound $ 3.48

Direct labor 0.5 hours $ 33.50 per hour $ 16.75

Variable manufacturing overhead 0.5 hours $ 8.50 per hour $

4.25

During March, the following activity was recorded by the company:

● The company produced 2,400 units during the month.

● A total of 19,400 pounds of material were purchased at a cost of $13,580.

● There was no beginning inventory of materials on hand to start the month; at the end of the

month, 3,620 pounds of material remained in the warehouse.

● During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour.

● Variable manufacturing overhead costs during March totaled $14,061.

The direct materials purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for March is:

A) $1,060 F

B) $1,060 U

C) $935 F

D) $935 U

222) Lacrue Incorporated has provided the following data concerning one of the products in its

standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 6.3 ounces $ 5.50 per ounce

Direct labor 0.40 hours $ 22.00 per hour

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Variable manufacturing overhead 0.40 hours $ 3.80 per hour

The actual output for the period was 3,700 units.

The total standard cost per unit is closest to:

A) $55.03 per unit

B) $43.45 per unit

C) $56.52 per unit

D) $44.97 per unit

223) Lacrue Incorporated has provided the following data concerning one of the products in its

standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 6.3 ounces $ 5.50 per ounce

Direct labor 0.40 hours $ 22.00 per hour

Variable manufacturing overhead 0.40 hours $ 3.80 per hour

The actual output for the period was 3,700 units.

The standard amount of materials allowed for the actual output is closest to:

A) 23,310 ounces

B) 23,300 ounces

C) 22,687 ounces

D) 23,940 ounces

224) Lacrue Incorporated has provided the following data concerning one of the products in its

standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 6.3 ounces $ 5.50 per ounce

Direct labor 0.40 hours $ 22.00 per hour

Variable manufacturing overhead 0.40 hours $ 3.80 per hour

The actual output for the period was 3,700 units.

The standard hours allowed for the actual output is closest to:

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A) 1,480 hours

B) 1,580 hours

C) 1,520 hours

D) 1,538 hours

225) Thyne Incorporated has provided the following data concerning one of the products in its

standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 6.9 grams $ 9.20 per gram

Direct labor 0.90 hours $ 21.20 per hour

Variable manufacturing overhead 0.90 hours $ 3.60 per hour

The actual output for the period was 3,900 units.

The total standard cost per unit is closest to:

A) $85.80 per unit

B) $84.22 per unit

C) $82.56 per unit

D) $90.70 per unit

226) Thyne Incorporated has provided the following data concerning one of the products in its

standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 6.9 grams $ 9.20 per gram

Direct labor 0.90 hours $ 21.20 per hour

Variable manufacturing overhead 0.90 hours $ 3.60 per hour

The actual output for the period was 3,900 units.

The standard amount of materials allowed for the actual output is closest to:

Version 1 126

A) 24,979 grams

B) 28,980 grams

C) 26,900 grams

D) 26,910 grams

227) Thyne Incorporated has provided the following data concerning one of the products in its

standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct materials 6.9 grams $ 9.20 per gram

Direct labor 0.90 hours $ 21.20 per hour

Variable manufacturing overhead 0.90 hours $ 3.60 per hour

The actual output for the period was 3,900 units.

The standard hours allowed for the actual output is closest to:

A) 3,510 hours

B) 3,092 hours

C) 3,780 hours

D) 3,330 hours

228) Hofbauer Incorporated has provided the following data concerning one of the products in

its standard cost system.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct labor 0.30 hours $21.00 per hour

The company has reported the following actual results for the product for September:

Actual output 5,600 units

Actual direct labor-hours 1,540 hours

Actual direct labor rate $ 21.40 per hour

Actual direct labor cost $ 32,956

The labor rate variance for the month is closest to:

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A) $672 U

B) $616 U

C) $672 F

D) $616 F

229) Hofbauer Incorporated has provided the following data concerning one of the products in

its standard cost system.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct labor 0.30 hours $21.00 per hour

The company has reported the following actual results for the product for September:

Actual output 5,600 units

Actual direct labor-hours 1,540 hours

Actual direct labor rate $ 21.40 per hour

Actual direct labor cost $ 32,956

The labor efficiency variance for the month is closest to:

A) $2,940 U

B) $2,940 F

C) $2,996 F

D) $2,996 U

230) Polaco Corporation makes a product that has the following direct labor standards:

Standard direct labor-hours 0.4 hours per unit

Standard direct labor rate $ 24.00 per hour

In May the company produced 8,500 units using 3,220 direct labor-hours. The actual direct labor

rate was $22.10 per hour.

The labor efficiency variance for May is:

A) $3,978 F

B) $4,320 F

C) $4,320 U

D) $3,978 U

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231) Polaco Corporation makes a product that has the following direct labor standards:

Standard direct labor-hours 0.4 hours per unit

Standard direct labor rate $ 24.00 per hour

In May the company produced 8,500 units using 3,220 direct labor-hours. The actual direct labor

rate was $22.10 per hour.

The labor rate variance for May is:

A) $6,460 U

B) $6,118 U

C) $6,118 F

D) $6,460 F

232) Wolery Incorporated has provided the following data concerning one of the products in

its standard cost system.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct labor 0.20 hours $ 21.70 per hour

The company has reported the following actual results for the product for April:

Actual output 8,800 units

Actual direct labor-hours 1,610 hours

Actual direct labor rate $ 23.30 per hour

The labor rate variance for the month is closest to:

A) $2,576 U

B) $2,816 U

C) $2,816 F

D) $2,576 F

233) Wolery Incorporated has provided the following data concerning one of the products in

its standard cost system.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct labor 0.20 hours $ 21.70 per hour

The company has reported the following actual results for the product for April:

Version 1 129

Actual output 8,800 units

Actual direct labor-hours 1,610 hours

Actual direct labor rate $ 23.30 per hour

The labor efficiency variance for the month is closest to:

A) $3,255 F

B) $3,255 U

C) $3,495 U

D) $3,495 F

234) Saxena Corporation makes a product that has the following direct labor standards:

Standard direct labor-hours 0.1 hours per unit

Standard direct labor rate $ 15.00 per hour

Standard cost $ 1.50 per unit

The company budgeted for production of 2,900 units in July, but actual production was 2,800

units. The company used 250 direct labor-hours to produce this output. The actual direct labor

rate was $14.10 per hour.

The labor efficiency variance for July is:

A) $450 U

B) $423 F

C) $423 U

D) $450 F

235) Saxena Corporation makes a product that has the following direct labor standards:

Standard direct labor-hours 0.1 hours per unit

Standard direct labor rate $ 15.00 per hour

Standard cost $ 1.50 per unit

The company budgeted for production of 2,900 units in July, but actual production was 2,800

units. The company used 250 direct labor-hours to produce this output. The actual direct labor

rate was $14.10 per hour.

The labor rate variance for July is:

Version 1 130

A) $252 U

B) $225 U

C) $225 F

D) $252 F

236) The following labor standards have been established for a particular product:

Standard labor-hours per unit of output 9.4 hours

Standard labor rate $ 16.20 per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked 11,500 hours

Actual total labor cost $ 183,195

Actual output 1,900 units

What is the labor rate variance for the month?

A) $513 F

B) $3,105 F

C) $3,105 U

D) $513 U

237) The following labor standards have been established for a particular product:

Standard labor-hours per unit of output 8.1 hours

Standard labor rate $ 14.40 per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked 8,700 hours

Actual total labor cost $ 129,195

Actual output 1,000 units

What is the labor rate variance for the month?

A) $450 F

B) $3,915 F

C) $3,915 U

D) $450 U

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238) The following labor standards have been established for a particular product:

Standard labor-hours per unit of output 8.1 hours

Standard labor rate $ 14.40 per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked 8,700 hours

Actual total labor cost $ 129,195

Actual output 1,000 units

What is the labor efficiency variance for the month?

A) $8,910 U

B) $12,555 F

C) $12,555 U

D) $8,640 U

239) A product’s standard cost card specifies that a unit of the product requires 4 direct labor-

hours. During September, 3,350 units were made, which was 150 units less than budgeted. The

total budgeted direct labor cost for September was $117,600. The direct labor cost incurred

during September was $111,850 and 13,450 direct labor-hours were worked.

The labor rate variance for the month was:

A) $5,750 F

B) $5,750 U

C) $1,130 F

D) $1,130 U

240) A product’s standard cost card specifies that a unit of the product requires 4 direct labor-

hours. During September, 3,350 units were made, which was 150 units less than budgeted. The

total budgeted direct labor cost for September was $117,600. The direct labor cost incurred

during September was $111,850 and 13,450 direct labor-hours were worked.

The labor efficiency variance for the month was:

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A) $420.00 U

B) $420.00 F

C) $415.80 U

D) $415.80 F

241) Chhom Corporation makes a product whose direct labor standards are 0.6 hours per unit

and $20 per hour. In November the company produced 6,950 units using 3,670 direct labor-

hours. The actual direct labor cost was $77,070.

The labor efficiency variance for November is:

A) $6,330 F

B) $10,000 F

C) $10,000 U

D) $6,330 U

242) Chhom Corporation makes a product whose direct labor standards are 0.4 hours per unit

and $19.00 per hour. In November the company produced 1,800 units using 760 direct labor-

hours. The actual direct labor cost was $13,300.

The labor efficiency variance for November is:

A) $700 F

B) $760 F

C) $760 U

D) $700 U

243) Chhom Corporation makes a product whose direct labor standards are 0.4 hours per unit

and $19.00 per hour. In November the company produced 1,800 units using 760 direct labor-

hours. The actual direct labor cost was $13,300.

The labor rate variance for November is:

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A) $1,080 F

B) $1,140 U

C) $1,080 U

D) $1,140 F

244) Dibert Incorporated has provided the following data concerning one of the products in its

standard cost system.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct labor 0.70 hours $ 20.40 per hour

The company has reported the following actual results for the product for February:

Actual output 5,100 units

Actual direct labor-hours 3,380 hours

Actual direct labor cost $ 74,698

The labor rate variance for the month is closest to:

A) $5,746 U

B) $6,069 F

C) $5,746 F

D) $6,069 U

245) Dibert Incorporated has provided the following data concerning one of the products in its

standard cost system.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Direct labor 0.70 hours $ 20.40 per hour

The company has reported the following actual results for the product for February:

Actual output 5,100 units

Actual direct labor-hours 3,380 hours

Actual direct labor cost $ 74,698

The labor efficiency variance for the month is closest to:

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A) $3,876 U

B) $4,199 F

C) $4,199 U

D) $3,876 F

246) Hardigree Corporation makes a product that has the following direct labor standards:

Standard direct labor-hours 0.3 hours per unit

Standard direct labor rate $ 23.00 per hour

In May the company’s budgeted production was 8,900 units, but the actual production was 8,800

units. The company used 2,820 direct labor-hours to produce this output. The actual direct labor

cost was $70,218.

The labor efficiency variance for May is:

A) $4,482 U

B) $4,482 F

C) $4,140 U

D) $4,140 F

247) Hardigree Corporation makes a product that has the following direct labor standards:

Standard direct labor-hours 0.3 hours per unit

Standard direct labor rate $ 23.00 per hour

In May the company’s budgeted production was 8,900 units, but the actual production was 8,800

units. The company used 2,820 direct labor-hours to produce this output. The actual direct labor

cost was $70,218.

The labor rate variance for May is:

A) $5,016 U

B) $5,358 U

C) $5,016 F

D) $5,358 F

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248) Descamps Incorporated has provided the following data concerning one of the products

in its standard cost system. Variable manufacturing overhead is applied to products on the basis

of direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Variable manufacturing overhead 0.20 hours $ 6.10 per hour

The company has reported the following actual results for the product for July:

Actual output 4,200 units

Actual direct labor-hours 780 hours

Actual variable overhead rate $ 6.20 per hour

The variable overhead rate variance for the month is closest to:

A) $78 F

B) $84 F

C) $78 U

D) $84 U

249) Descamps Incorporated has provided the following data concerning one of the products

in its standard cost system. Variable manufacturing overhead is applied to products on the basis

of direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Variable manufacturing overhead 0.20 hours $ 6.10 per hour

The company has reported the following actual results for the product for July:

Actual output 4,200 units

Actual direct labor-hours 780 hours

Actual variable overhead rate $ 6.20 per hour

The variable overhead efficiency variance for the month is closest to:

A) $366 F

B) $372 U

C) $372 F

D) $366 U

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250) Bressman Incorporated has provided the following data concerning one of the products in

its standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Variable manufacturing overhead 0.20 hours $ 6.70 per hour

The company has reported the following actual results for the product for May:

Actual output 9,300 units

Actual direct labor-hours 1,820 hours

Actual variable overhead cost $ 12,558

The variable overhead rate variance for the month is closest to:

A) $364 U

B) $372 F

C) $364 F

D) $372 U

251) BressmanIncorporated has provided the following data concerning one of the products in

its standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Variable manufacturing overhead 0.20 hours $ 6.70 per hour

The company has reported the following actual results for the product for May:

Actual output 9,300 units

Actual direct labor-hours 1,820 hours

Actual variable overhead cost $ 12,558

The variable overhead efficiency variance for the month is closest to:

A) $268 U

B) $268 F

C) $276 F

D) $276 U

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252) Juhasz Corporation makes a product with the following standards for direct labor and

variable overhead:

Standard Quantity or Hours Standard Price or Rate

Direct labor 0.50 hours $30.00 per hour

Variable overhead 0.50 hours $ 5.00 per hour

In August the company produced 8,900 units using 4,620 direct labor-hours. The actual variable

overhead cost was $21,714. The company applies variable overhead on the basis of direct labor-

hours.

The variable overhead efficiency variance for August is:

A) $850 U

B) $799 U

C) $799 F

D) $850 F

253) Juhasz Corporation makes a product with the following standards for direct labor and

variable overhead:

Standard Quantity or Hours Standard Price or Rate

Direct labor 0.5 hours $20.00 per hour

Variable overhead 0.5 hours $ 4.00 per hour

In August the company produced 7,900 units using 4,080 direct labor-hours. The actual variable

overhead cost was $15,096. The company applies variable overhead on the basis of direct labor-

hours.

The variable overhead efficiency variance for August is:

A) $520 U

B) $481 U

C) $481 F

D) $520 F

254) Juhasz Corporation makes a product with the following standards for direct labor and

variable overhead:

Standard Quantity or Hours Standard Price or Rate

Direct labor 0.5 hours $20.00 per hour

Variable overhead 0.5 hours $ 4.00 per hour

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In August the company produced 7,900 units using 4,080 direct labor-hours. The actual variable

overhead cost was $15,096. The company applies variable overhead on the basis of direct labor-

hours.

The variable overhead rate variance for August is:

A) $1,185 F

B) $1,224 U

C) $1,185 U

D) $1,224 F

255) The following data have been provided by Furr Corporation:

Budgeted production 7,000 motors

Standard machine-hours per motor 8.6 machine-hours

Standard indirect labor rate $ 7.10 per machine-hour

Standard power rate $ 1.40 per machine-hour

Actual production 7,300 motors

Actual machine-hours (total) 62,140 machine-hours

Actual indirect labor cost (total) $408,340

Actual power cost (total) $ 94,989

Indirect labor and power are both elements of variable manufacturing overhead.

The variable overhead rate variance for indirect labor is closest to:

A) $32,854 F

B) $32,854 U

C) $37,398 F

D) $4,544 F

256) The following data have been provided by Furr Corporation:

Budgeted production 7,000 motors

Standard machine-hours per motor 8.6 machine-hours

Standard indirect labor rate $ 7.10 per machine-hour

Standard power rate $ 1.40 per machine-hour

Actual production 7,300 motors

Actual machine-hours (total) 62,140 machine-hours

Actual indirect labor cost (total) $408,340

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Actual power cost (total) $ 94,989

Indirect labor and power are both elements of variable manufacturing overhead.

The variable overhead rate variance for power is closest to:

A) $7,097 U

B) $7,097 F

C) $896 F

D) $7,993 U

257) Irving Corporation makes a product with the following standards for direct labor and

variable overhead:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct labor 0.3 hours $ 14.00 per hour $ 4.20

Variable overhead 0.3 hours $ 5.00 per hour $ 1.50

In November the company’s budgeted production was 5,300 units, but the actual production was

5,100 units. The company used 1,650 direct labor-hours to produce this output. The actual

variable overhead cost was $7,590. The company applies variable overhead on the basis of direct

labor-hours.

The variable overhead efficiency variance for November is:

A) $552 U

B) $600 U

C) $600 F

D) $552 F

258) Irving Corporation makes a product with the following standards for direct labor and

variable overhead:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct labor 0.20 hours $ 26.00 per hour $ 5.20

Variable overhead 0.20 hours $ 6.20 per hour $ 1.24

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In November the company’s budgeted production was 6,500 units, but the actual production was

6,300 units. The company used 1,550 direct labor-hours to produce this output. The actual

variable overhead cost was $8,990. The company applies variable overhead on the basis of direct

labor-hours.

The variable overhead rate variance for November is:

A) $504 U

B) $620 U

C) $620 F

D) $504 F

259) Irving Corporation makes a product with the following standards for direct labor and

variable overhead:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct labor 0.3 hours $14.00 per hour $ 4.20

Variable overhead 0.3 hours $ 5.00 per hour $ 1.50

In November the company’s budgeted production was 5,300 units, but the actual production was

5,100 units. The company used 1,650 direct labor-hours to produce this output. The actual

variable overhead cost was $7,590. The company applies variable overhead on the basis of direct

labor-hours.

The variable overhead rate variance for November is:

A) $612 U

B) $660 U

C) $660 F

D) $612 F

260) Termeer Incorporated has provided the following data concerning one of the products in

its standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Variable manufacturing overhead 0.30 hours $2.30 per hour

The company has reported the following actual results for the product for August:

Actual output 8,000 units

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Actual direct labor-hours 2,380 hours

Actual variable overhead rate $ 2.10 per hour

Actual variable overhead cost $4,998

The variable overhead rate variance for the month is closest to:

A) $480 F

B) $480 U

C) $476 U

D) $476 F

261) Termeer Incorporated has provided the following data concerning one of the products in

its standard cost system. Variable manufacturing overhead is applied to products on the basis of

direct labor-hours.

Inputs Standard Quantity or Hours per Unit of Output Standard Price

or Rate

Variable manufacturing overhead 0.30 hours $2.30 per hour

The company has reported the following actual results for the product for August:

Actual output 8,000 units

Actual direct labor-hours 2,380 hours

Actual variable overhead rate $ 2.10 per hour

Actual variable overhead cost $4,998

The variable overhead efficiency variance for the month is closest to:

A) $46 U

B) $42 F

C) $46 F

D) $42 U

262) The following standards for variable manufacturing overhead have been established for a

company that makes only one product:

Standard hours per unit of output 8.1 hours

Standard variable overhead rate $14.85 per hour

The following data pertain to operations for the last month:

Actual hours 8,600 hours

Actual total variable manufacturing overhead cost $ 130,720

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Actual output 1,000 units

What is the variable overhead rate variance for the month?

A) $3,010 F

B) $3,010 U

C) $10,435 U

D) $10,435 F

263) The following standards for variable manufacturing overhead have been established for a

company that makes only one product:

Standard hours per unit of output 8.1 hours

Standard variable overhead rate $14.85 per hour

The following data pertain to operations for the last month:

Actual hours 8,600 hours

Actual total variable manufacturing overhead cost $130,720

Actual output 1,000 units

What is the variable overhead efficiency variance for the month?

A) $7,600 F

B) $2,835 F

C) $7,600 U

D) $7,425 U

264) The following data have been provided by Liggett Corporation:

Budgeted production 7,400 units

Standard machine-hours per unit 6.6 machine-hours

Standard lubricants rate $ 3.50 per machine-hour

Standard supplies rate $ 2.00 per machine-hour

Actual production 7,600 units

Actual machine-hours (total) 49,840 machine-hours

Actual lubricants cost (total) $179,821

Actual supplies cost (total) $ 98,933

Lubricants and supplies are both elements of variable manufacturing overhead.

The variable overhead rate variance for lubricants is closest to:

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A) $1,120 F

B) $5,381 F

C) $4,261 U

D) $5,381 U

265) The following data have been provided by Liggett Corporation:

Budgeted production 7,400 units

Standard machine-hours per unit 6.6 machine-hours

Standard lubricants rate $ 3.50 per machine-hour

Standard supplies rate $ 2.00 per machine-hour

Actual production 7,600 units

Actual machine-hours (total) 49,840 machine-hours

Actual lubricants cost (total) $179,821

Actual supplies cost (total) $ 98,933

Lubricants and supplies are both elements of variable manufacturing overhead.

The variable overhead rate variance for supplies is closest to:

A) $640 F

B) $1,387 F

C) $1,387 U

D) $747 F

266) A manufacturing company that has only one product has established the following

standards for its variable manufacturing overhead. The company bases its variable manufacturing

overhead standards on direct labor-hours.

Standard hours per unit of output 4.80 direct labor-hours

Standard variable overhead rate $11.60 per direct labor-hour

The following data pertain to operations for the last month:

Actual direct labor-hours 8,700 direct labor-hours

Actual total variable manufacturing overhead cost $ 95,950

Actual output 1,700 units

What is the variable overhead rate variance for the month?

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A) $5,251 U

B) $4,970 U

C) $5,251 F

D) $4,970 F

267) A manufacturing company that has only one product has established the following

standards for its variable manufacturing overhead. The company bases its variable manufacturing

overhead standards on direct labor-hours.

Standard hours per unit of output 7.2 direct labor-hours

Standard variable overhead rate $14.20 per direct labor-hour

The following data pertain to operations for the last month:

Actual direct labor-hours 5,100 direct labor-hours

Actual total variable manufacturing overhead cost $ 72,165

Actual output 600 units

What is the variable overhead rate variance for the month?

A) $10,821 U

B) $255 U

C) $10,821 F

D) $255 F

268) A manufacturing company that has only one product has established the following

standards for its variable manufacturing overhead. The company bases its variable manufacturing

overhead standards on direct labor-hours.

Standard hours per unit of output 5.20 direct labor-hours

Standard variable overhead rate $11.65 per direct labor-hour

The following data pertain to operations for the last month:

Actual direct labor-hours 8,700 direct labor-hours

Actual total variable manufacturing overhead cost $ 95,990

Actual output 1,600 units

What is the variable overhead efficiency variance for the month?

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A) $4,427 U

B) $7,253 F

C) $2,412 U

D) $7,253 U

269) A manufacturing company that has only one product has established the following

standards for its variable manufacturing overhead. The company bases its variable manufacturing

overhead standards on direct labor-hours.

Standard hours per unit of output 7.2 direct labor-hours

Standard variable overhead rate $14.20 per direct labor-hour

The following data pertain to operations for the last month:

Actual direct labor-hours 5,100 direct labor-hours

Actual total variable manufacturing overhead cost $ 72,165

Actual output 600 units

What is the variable overhead efficiency variance for the month?

A) $11,076 U

B) $11,037 F

C) $11,037 U

D) $216 U

270) Brummer Corporation makes a product whose variable overhead standards are based on

direct labor-hours. The quantity standard is 0.10 hours per unit. The variable overhead rate

standard is $9.60 per hour. In January the company produced 7,500 units using 810 direct labor-

hours. The actual variable overhead rate was $9.50 per hour.

The variable overhead efficiency variance for January is:

A) $576 F

B) $570 U

C) $576 U

D) $570 F

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271) Brummer Corporation makes a product whose variable overhead standards are based on

direct labor-hours. The quantity standard is 0.1 hours per unit. The variable overhead rate

standard is $8.00 per hour. In January the company produced 8,700 units using 910 direct labor-

hours. The actual variable overhead rate was $7.90 per hour.

The variable overhead efficiency variance for January is:

A) $320 F

B) $316 U

C) $320 U

D) $316 F

272) Brummer Corporation makes a product whose variable overhead standards are based on

direct labor-hours. The quantity standard is 0.1 hours per unit. The variable overhead rate

standard is $8.00 per hour. In January the company produced 8,700 units using 910 direct labor-

hours. The actual variable overhead rate was $7.90 per hour.

The variable overhead rate variance for January is:

A) $91 F

B) $87 F

C) $91 U

D) $87 U

273) Vermeillen Corporation uses a standard costing system in which variable manufacturing

overhead is assigned to production on the basis of the number of machine setups. The following

data pertain to one month’s operations:

● Variable manufacturing overhead cost incurred: $70,000

● Total variable manufacturing overhead variance: $4,550 Favorable

● Standard machine setups allowed for actual production: 3,550

● Actual machine setups incurred: 3,500

The standard variable overhead rate per machine setup is:

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A) $20.00

B) $21.30

C) $18.44

D) $21.00

274) Vermeillen Corporation uses a standard costing system in which variable manufacturing

overhead is assigned to production on the basis of the number of machine setups. The following

data pertain to one month’s operations:

● Variable manufacturing overhead cost incurred: $70,000

● Total variable manufacturing overhead variance: $4,550 Favorable

● Standard machine setups allowed for actual production: 3,550

● Actual machine setups incurred: 3,500

The variable overhead rate variance is:

A) $1,000 Favorable

B) $1,000 Unfavorable

C) $3,500 Unfavorable

D) $3,500 Favorable

275) The Maxit Corporation has a standard costing system in which variable manufacturing

overhead is assigned to production on the basis of standard machine-hours. The following data

are available for July:

● Actual variable manufacturing overhead cost incurred: $23,940

● Actual machine-hours worked: 2,200 hours

● Variable overhead rate variance: $4,320 U

● Total variable overhead spending variance: $5,940 U

The variable overhead efficiency variance for July is:

A) $1,620 U

B) $10,260 U

C) $10,260 F

D) $1,620 F

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276) The Maxit Corporation has a standard costing system in which variable manufacturing

overhead is assigned to production on the basis of standard machine-hours. The following data

are available for July:

● Actual variable manufacturing overhead cost incurred: $11,310

● Actual machine-hours worked: 1,600 hours

● Variable overhead rate variance: $1,710 U

● Total variable overhead spending variance: $2,310 U

The variable overhead efficiency variance for July is:

A) $600 U

B) $540 U

C) $540 F

D) $600 F

277) The Maxit Corporation has a standard costing system in which variable manufacturing

overhead is assigned to production on the basis of standard machine-hours. The following data

are available for July:

● Actual variable manufacturing overhead cost incurred: $11,310

● Actual machine-hours worked: 1,600 hours

● Variable overhead rate variance: $1,710 U

● Total variable overhead spending variance: $2,310 U

The standard number of machine-hours allowed for July production is closest to:

A) 1,600 hours

B) 1,700 hours

C) 1,300 hours

D) 1,500 hours

278) Valera Corporation makes a product with the following standards for labor and variable

overhead:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

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Direct labor 0.4 hours $21.00 per hour $8.40

Variable overhead 0.4 hours $ 6.00 per hour $2.40

The company budgeted for production of 5,300 units in July, but actual production was 5,400

units. The company used 2,130 direct labor-hours to produce this output. The actual variable

overhead rate was $6.10 per hour. The company applies variable overhead on the basis of direct

labor-hours.

The variable overhead efficiency variance for July is:

A) $183 F

B) $180 U

C) $180 F

D) $183 U

279) Valera Corporation makes a product with the following standards for labor and variable

overhead:

Standard Quantity or Hours Standard Price or Rate Standard

Cost Per Unit

Direct labor 0.4 hours $21.00 per hour $8.40

Variable overhead 0.4 hours $ 6.00 per hour $2.40

The company budgeted for production of 5,300 units in July, but actual production was 5,400

units. The company used 2,130 direct labor-hours to produce this output. The actual variable

overhead rate was $6.10 per hour. The company applies variable overhead on the basis of direct

labor-hours.

The variable overhead rate variance for July is:

A) $213 F

B) $216 F

C) $216 U

D) $213 U

280) Geschke Corporation, which produces commercial safes, has provided the following data:

Budgeted production 8,500 safes

Standard machine-hours per safe 9.1 machine-hours

Standard supplies cost $ 1.70 per machine-hour

Actual production 8,700 safes

Actual machine-hours 79,100 machine-hours

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Actual supplies cost $123,642

Supplies cost is an element of variable manufacturing overhead.

The variable overhead rate variance for supplies is closest to:

A) $10,828 F

B) $10,947 U

C) $10,828 U

D) $10,947 F

281) Geschke Corporation, which produces commercial safes, has provided the following data:

Budgeted production 8,500 safes

Standard machine-hours per safe 9.1 machine-hours

Standard supplies cost $ 1.70 per machine-hour

Actual production 8,700 safes

Actual machine-hours 79,100 machine-hours

Actual supplies cost $123,642

Supplies cost is an element of variable manufacturing overhead.

The variable overhead efficiency variance for supplies is closest to:

A) $10,947 F

B) $119 U

C) $10,947 U

D) $119 F

282) Waste on the production line will result in an unfavorable materials price variance.

⊚ true

⊚ false

283) When the materials price variance is recorded at the time of purchase, raw materials are

recorded as inventory at standard cost.

⊚ true

⊚ false

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284) Material price variances are often isolated at the time materials are purchased, rather than

when they are placed into production, to facilitate earlier recognition of variances.

⊚ true

⊚ false

285) The materials price variance is computed based on the amount of materials purchased

during the period.

⊚ true

⊚ false

286) The standard price per unit for direct materials should reflect the final, delivered cost of

the materials.

⊚ true

⊚ false

287) In general, the production manager is responsible for the materials price variance.

⊚ true

⊚ false

288) An unfavorable materials quantity variance occurs when the actual quantity used in

production is less than the standard quantity allowed for the actual output of the period.

⊚ true

⊚ false

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289) The labor rate variance measures the difference between the actual hourly rate and the

standard hourly rate, multiplied by the standard hours allowed for the actual output.

⊚ true

⊚ false

290) If the actual hourly rate is greater than the standard hourly rate, the labor rate variance is

labeled unfavorable (U).

⊚ true

⊚ false

291) The labor efficiency variance is labeled favorable (F) if the actual hours used is less than

the standard hours allowed for the actual output.

⊚ true

⊚ false

292) If skilled workers with high hourly rates of pay are given duties that require little skill

and call for lower hourly rates of pay, this will result in a favorable labor rate variance.

⊚ true

⊚ false

293) The standard labor rate per hour should not include any employment taxes.

⊚ true

⊚ false

294) When more hours of labor time are necessary to complete a job than the standard allows,

the labor efficiency variance is unfavorable.

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⊚ true

⊚ false

295) If demand is insufficient to keep everyone busy and workers are not laid off, a favorable

(F) labor efficiency variance often will be a result.

⊚ true

⊚ false

296) The variable overhead efficiency variance does not actually measure how efficiently

variable manufacturing overhead resources were used.

⊚ true

⊚ false

297) The variable overhead efficiency variance measures the difference between the actual

level of activity and the standard activity allowed for the actual output, multiplied by the variable

part of the predetermined overhead rate.

⊚ true

⊚ false

298) If variable manufacturing overhead is applied based on direct labor-hours, it is impossible

to have a favorable labor rate variance and unfavorable variable overhead rate variance for the

same period.

⊚ true

⊚ false

299) The variable overhead efficiency variance measures the difference between the actual

level of activity and the standard activity allowed for the actual output, multiplied by the fixed

part of the predetermined overhead rate.

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⊚ true

⊚ false

300) If demand is insufficient to keep everyone busy and workers are not laid off, an

unfavorable (U) variable overhead efficiency variance often will be a result unless managers

build excessive inventories.

⊚ true

⊚ false

301) A quantity standard indicates how much of an input should be used to make a unit of

product or provide a unit of service.

⊚ true

⊚ false

302) The standard quantity or standard hours allowed refers to the amount of the input that

should have been used to produce the actual output of the period.

⊚ true

⊚ false

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Answer Key

Test name: chapter 10

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