101
Fluegge 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
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
–
120) 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
121) The raw materials quantity variance for the month is closest to:
A) $48 U
B) $54 U
C) $54 F
D) $48 F
122) The labor rate variance for the month is closest to:
A) $1,722 U
B) $1,722 F
C) $1,620 F
D) $1,620 U
123) 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
124) 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
125) 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
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.
126) The materials quantity variance for September is:
A) $2,170 U
B) $2,232 U
C) $2,170 F
D) $2,232 F
127) The materials price variance for September is:
A) $1,150 U
B) $1,150 F
C) $1,160 F
D) $1,160 U
128) The labor efficiency variance for September is:
A) $1,540 F
B) $1,687 U
C) $1,687 F
D) $1,540 U
129) The labor rate variance for September is:
A) $3,675 F
B) $3,528 U
C) $3,528 F
D) $3,675 U
130) The variable overhead efficiency variance for September is:
A) $140 U
B) $140 F
C) $133 F
D) $133 U
131) The variable overhead rate variance for September is:
A) $175 F
B) $168 U
C) $168 F
D) $175 U
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.
132) The materials quantity variance for January is:
A) $2,640 U
B) $2,574 F
C) $2,640 F
D) $2,574 U
133) The materials price variance for January is:
A) $1,690 U
B) $1,540 F
C) $1,540 U
D) $1,690 F
134) The labor efficiency variance for January is:
A) $200 U
B) $213 U
C) $200 F
D) $213 F
135) The labor rate variance for January is:
A) $260 U
B) $273 U
C) $260 F
D) $273 F
136) The variable overhead efficiency variance for January is:
A) $36 U
B) $40 F
C) $36 F
D) $40 U
137) The variable overhead rate variance for January is:
A) $84 U
B) $80 F
C) $84 F
D) $80 U
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.
138) The materials quantity variance for June is:
A) $2,242 U
B) $2,242 F
C) $2,360 U
D) $2,360 F
139) The materials price variance for June is:
A) $2,140 U
B) $2,140 F
C) $1,820 U
D) $1,820 F
140) The labor efficiency variance for June is:
A) $1,380 U
B) $1,380 F
C) $1,446 F
D) $1,446 U
141) The labor rate variance for June is:
A) $616 F
B) $616 U
C) $550 F
D) $550 U
142) The variable overhead efficiency variance for June is:
A) $372 F
B) $372 U
C) $360 F
D) $360 U