96) The variable overhead rate variance for the month is closest to:
A) $460 U
B) $510 F
C) $510 U
D) $460 F
97) 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
Dirickson Inc. 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
Direct labor
0.10
hours
$
18.00
Variable manufacturing
overhead
0.10
hours
$
5.30
–
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
$
541,880
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
98) 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
99) The raw materials quantity variance for the month is closest to:
A) $86 U
B) $86 F
C) $94 U
D) $94 F
100) 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
101) 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
102) The variable overhead rate variance for the month is closest to:
A) $228 F
B) $246 U
C) $246 F
D) $228 U
103) The variable overhead efficiency variance for the month is closest to:
A) $336 F
B) $318 F
C) $336 U
D) $318 U
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.
104) The materials quantity variance for August is:
A) $10,980 F
B) $11,346 U
C) $10,980 U
D) $11,346 F
105) The materials price variance for August is:
A) $5,440 F
B) $6,320 F
C) $5,440 U
D) $6,320 U
106) The labor efficiency variance for August is:
A) $2,400 U
B) $2,400 F
C) $2,352 F
D) $2,352 U
107) The labor rate variance for August is:
A) $464 F
B) $512 U
C) $464 U
D) $512 F
108) The variable overhead efficiency variance for August is:
A) $720 U
B) $720 F
C) $780 U
D) $780 F
109) The variable overhead rate variance for August is:
A) $640 F
B) $580 U
C) $640 U
D) $580 F
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.
110) The materials quantity variance for June is:
A) $4,200 F
B) $4,200 U
C) $4,020 U
D) $4,020 F
111) The materials price variance for June is:
A) $7,620 U
B) $6,825 U
C) $6,825 F
D) $7,620 F
112) The labor efficiency variance for June is:
A) $4,560 F
B) $4,560 U
C) $4,731 U
D) $4,731 F
113) The labor rate variance for June is:
A) $1,890 F
B) $2,061 U
C) $2,061 F
D) $1,890 U
114) The variable overhead efficiency variance for June is:
A) $760 F
B) $760 U
C) $741 F
D) $741 U
115) The variable overhead rate variance for June is:
A) $210 U
B) $229 F
C) $229 U
D) $210 F
Grub Chemical Corporation has developed cost standards for the production of its new cologne,
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
116) What is ChocO’s materials (milk chocolate) price variance?
A) $56 Favorable
B) $450 Favorable
C) $502 Unfavorable
D) $740 Unfavorable
117) What is ChocO’s materials (milk chocolate) quantity variance?
A) $238 Unfavorable
B) $476 Unfavorable
C) $952 Favorable
D) $1,190 Unfavorable
118) What is ChocO’s labor rate variance?
A) $902 Favorable
B) $2,880 Favorable
C) $3,782 Favorable
D) $14,432 Favorable
119) What is ChocO’s variable overhead efficiency variance?
A) $7,260 Unfavorable
B) $10,560 Favorable
C) $31,240 Unfavorable
D) $39,050 Unfavorable