76) 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
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.
77) The materials price variance is:
A) $700 U
B) $600 F
C) $600 U
D) $700 F
78) The materials quantity variance is:
A) $1,200 U
B) $1,100 U
C) $1,100 F
D) $1,200 F
79) The labor rate variance is:
A) $625 U
B) $500 F
C) $500 U
D) $625 F
80) The labor efficiency variance is:
A) $4,000 F
B) $4,125 F
C) $4,125 U
D) $4,000 U
81) Bulluck Corporation makes a product with the following standard costs:
Standard Quantity or
Hours
Standard Price or
Rate
Direct materials
3.5
$
1.00
per gram
Direct labor
0.7
$
11.00
per hour
Variable overhead
0.7
$
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 quantity variance for July is:
A) $870 U
B) $1,044 U
C) $870 F
D) $1,044 F
82) Bulluck Corporation makes a product with the following standard costs:
Standard Quantity or
Hours
Standard Price or
Rate
Direct materials
3.5
$
1.00
per gram
Direct labor
0.7
$
11.00
per hour
Variable overhead
0.7
$
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
83) Bulluck Corporation makes a product with the following standard costs:
Standard Quantity or
Hours
Standard Price or
Rate
Direct materials
3.5
$
1.00
per gram
Direct labor
0.7
$
11.00
per hour
Variable overhead
0.7
$
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 efficiency variance for July is:
A) $2,090 F
B) $2,166 U
C) $2,090 U
D) $2,166 F
84) Bulluck Corporation makes a product with the following standard costs:
Standard Quantity or
Hours
Standard Price or
Rate
Direct materials
3.5
$
1.00
per gram
Direct labor
0.7
$
11.00
per hour
Variable overhead
0.7
$
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
85) Bulluck Corporation makes a product with the following standard costs:
Standard Quantity or
Hours
Standard Price or
Rate
Direct materials
3.5
$
1.00
per gram
Direct labor
0.7
$
11.00
per hour
Variable overhead
0.7
$
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:
A) $380 F
B) $399 U
C) $380 U
D) $399 F
86) Bulluck Corporation makes a product with the following standard costs:
Standard Quantity or
Hours
Standard Price or
Rate
Direct materials
3.5
$
1.00
per gram
Direct labor
0.7
$
11.00
per hour
Variable overhead
0.7
$
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
Ravena Labs., Inc. 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.
87) The materials price variance for October is:
A) $15,000 Unfavorable
B) $15,000 Favorable
C) $25,000 Unfavorable
D) $25,000 Favorable
88) The materials quantity variance for October is:
A) $52,500 Unfavorable
B) $52,500 Favorable
C) $12,500 Unfavorable
D) $12,500 Favorable
89) The labor efficiency variance for October is:
A) $1,400 Favorable
B) $1,900 Unfavorable
C) $3,750 Favorable
D) $4,375 Unfavorable
90) The variable overhead rate variance for October is:
A) $1,400 Favorable
B) $1,900 Unfavorable
C) $3,750 Favorable
D) $4,375 Unfavorable
91) The variable overhead efficiency variance for October is:
A) $1,400 Favorable
B) $1,225 Unfavorable
C) $1,900 Unfavorable
D) $2,700 Favorable
92) 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
93) The raw materials quantity variance for the month is closest to:
A) $77 F
B) $70 U
C) $77 U
D) $70 F
94) The labor rate variance for the month is closest to:
A) $1,020 F
B) $1,020 U
C) $920 F
D) $920 U
95) 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