58) 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
59) 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
60) 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
61) Luma Inc. 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 price variance for the month is closest to:
A) $9,081 U
B) $9,450 F
C) $9,450 U
D) $9,081 F
46
62) Luma Inc. 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
63) 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:
A) $3,880 F
B) $3,686 U
C) $3,686 F
D) $3,880 U
64) 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
65) Devoto Inc. 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:
A) $51,600 U
B) $48,568 F
C) $51,600 F
D) $48,568 U
50
66) Devoto Inc. 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
67) 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:
A) $2 per unit
B) $16 per unit
C) $8 per unit
D) $10 per unit
68) 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 pounds
69) 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:
A) $5,576 F
B) $5,576 U
C) $5,440 F
D) $5,440 U
70) 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
71) 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?
A) $480 F
B) $430 F
C) $430 U
D) $480 U
72) 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?
A) $6,550 U
B) $15,982 U
C) $16,104 U
D) $6,600 U
58
73) Bumgardner Inc. 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
74) Bumgardner Inc. 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:
A) $50 U
B) $57 U
C) $57 F
D) $50 F
75) 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:
A) $891 U
B) $810 U
C) $891 F
D) $810 F