85. Shade Company adopted a standard cost system several years ago. The standard costs
for direct labor and direct materials for its single product are as follows: Materials (5 kilograms ×
$12.00/kilogram) = $60.00/unit. Direct labor (3.5 hours/unit × $20.00/hour) = $70.00/unit. All
materials were issued at the beginning of processing. The operating data shown below were
taken from the records for December:
In-process beginning inventory None
In-process ending inventory—80% complete as to labor 960 units
Units completed during the period 6,700 units
Budgeted output 7,200 units
Purchases of materials (in kilograms) 40,000
Total actual direct labor cost incurred $528,410
Direct labor hours worked (AQ) 26,500 hours
Materials purchase-price variance $1,600 favorable
Increase in materials inventory in December 1,550 kilograms
The direct labor rate variance for December was:
86. Shade Company adopted a standard cost system several years ago. The standard costs
for direct labor and direct materials for its single product are as follows: Materials (5 kilograms ×
$12.00/kilogram) = $60.00/unit. Direct labor (3.5 hours/unit × $20.00/hour) = $70.00/unit. All
materials were issued at the beginning of processing. The operating data shown below were
taken from the records for December:
In-process beginning inventory None
In-process ending inventory—80% complete as to labor 960 units
Units completed during the period 6,700 units
Budgeted output 7,200 units
Purchases of materials (in kilograms) 40,000
Total actual direct labor cost incurred $528,410
Direct labor hours worked (AQ) 26,500 hours
Materials purchase-price variance $1,600 favorable
Increase in materials inventory in December 1,550 kilograms
The direct labor efficiency variance for December was:
87. Shade Company adopted a standard cost system several years ago. The standard costs
for direct labor and direct materials for its single product are as follows: Materials (5 kilograms ×
$12.00/kilogram) = $60.00/unit. Direct labor (3.5 hours/unit × $20.00/hour) = $70.00/unit. All
materials were issued at the beginning of processing. The operating data shown below were
taken from the records for December:
In-process beginning inventory None
In-process ending inventory—80% complete as to labor 960 units
Units completed during the period 6,700 units
Budgeted output 7,200 units
Purchases of materials (in kilograms) 40,000
Total actual direct labor cost incurred $528,410
Direct labor hours worked (AQ) 26,500 hours
Materials purchase-price variance $1,600 favorable
Increase in materials inventory in December 1,550 kilograms
The direct labor flexible-budget variance for December was:
88. Kennedy Inc. has the following data for its operation in August:
Increase in direct materials inventory 100 Sets
Direct materials purchased (AQ) 1,600 Sets
Finished goods manufactured 700 Units
Direct materials purchase-price variance $400 Favorable
Budgeted
Finished goods to manufacture 800 Units
Direct materials purchases 2,000 Sets
Direct materials per unit of finished goods 2 Sets
Direct materials price per set (SP) $3.60
What was the actual purchase price (AP) per set of direct materials purchased (to two decimal
places)?
89. Kennedy Inc. has the following data for its operation in August:
Increase in direct materials inventory 100 Sets
Direct materials purchased (AQ) 1,600 Sets
Finished goods manufactured 700 Units
Direct materials purchase-price variance $400 Favorable
Budgeted
Finished goods to manufacture 800 Units
Direct materials purchases 2,000 Sets
Direct materials per unit of finished goods 2 Sets
Direct materials price per set (SP) $3.60
What was the direct materials usage variance in August?
90. Matinna Co. maintains no inventories and has the following data pertaining to one of its
direct materials in July:
Standard quantity of direct materials for the units manufactured 30,000
Direct materials purchases—actual cost $63,000
Standard price per unit of direct materials (SP) $2.00
Direct material efficiency variance-favorable $4,500
All materials purchased during the month were issued to production.
What was the direct materials price variance for July?
91. Matinna Co. maintains no inventories and has the following data pertaining to one of its
direct materials in July:
Standard quantity of direct materials for the units manufactured 30,000
Direct materials purchases—actual cost $63,000
Standard price per unit of direct materials (SP) $2.00
Direct material efficiency variance-favorable $4,500
All materials purchased during the month were issued to production.
What was the company’s direct materials flexible-budget (FB) variance for July?
92. Prokp Co.’s records for April disclosed the following data relating to direct labor:
Actual labor cost (payroll) for April $20,000
Labor rate variance $4,000 favorable
Labor efficiency variance $2,400 unfavorable
Actual direct labor hours worked (AQ) 1,000
Prokp’s standard direct labor rate per hour (SP) in April was:
93. Prokp Co.’s records for April disclosed the following data relating to direct labor:
Actual labor cost (payroll) for April $20,000
Labor rate variance $4,000 favorable
Labor efficiency variance $2,400 unfavorable
Actual direct labor hours worked (AQ) 1,000
Prokp’s total standard direct labor hours allowed (SQ) for units produced in April were:
94. Prokp Co.’s records for April disclosed the following data relating to direct labor:
Actual labor cost (payroll) for April $20,000
Labor rate variance $4,000 favorable
Labor efficiency variance $2,400 unfavorable
Actual direct labor hours worked (AQ) 1,000
Prokp’s total standard direct labor cost for the output in April was:
95. Marv Company’s direct labor costs for manufacturing its only product were as follows for
October:
Standard direct labor hours per unit of product 2
Budgeted finished units for the period 6,000
Number of finished units produced 5,000
Standard rate per direct labor hour (SP) $20
Direct labor costs incurred $207,000
Actual wage rate per direct labor hour (AP) $18
The direct labor efficiency variance for October was:
96. Marv Company’s direct labor costs for manufacturing its only product were as follows for
October:
Standard direct labor hours per unit of product 2
Budgeted finished units for the period 6,000
Number of finished units produced 5,000
Standard rate per direct labor hour (SP) $20
Direct labor costs incurred $207,000
Actual wage rate per direct labor hour (AP) $18
The direct labor rate variance for October was:
97. Marv Company’s direct labor costs for manufacturing its only product were as follows for
October:
Standard direct labor hours per unit of product 2
Budgeted finished units for the period 6,000
Number of finished units produced 5,000
Standard rate per direct labor hour (SP) $20
Direct labor costs incurred $207,000
Actual wage rate per direct labor hour (AP) $18
The total direct labor variance for October was:
98. Mandy Company has the following information from last month:
Standard direct labor hours for units produced (SQ)3,600
Actual direct labor hours worked (AQ) 3,480
Direct labor efficiency variance (F) $5,760
Total payroll $187,920
What was Mandy’s
standard
direct labor rate per hour (SP)?
99. Mandy Company has the following information from last month:
Standard direct labor hours for units produced (SQ)3,600
Actual direct labor hours worked (AQ) 3,480
Direct labor efficiency variance (F) $5,760
Total payroll $187,920
What was Mandy’s
actual
direct labor rate per hour (AP)?
100. Mandy Company has the following information from last month:
Standard direct labor hours for units produced (SQ)3,600
Actual direct labor hours worked (AQ) 3,480
Direct labor efficiency variance (F) $5,760
Total payroll $187,920
What was Mandy’s direct labor rate variance for the month?
101. Mandy Company has the following information from last month:
Standard direct labor hours for units produced (SQ)3,600
Actual direct labor hours worked (AQ) 3,480
Direct labor efficiency variance (F) $5,760
Total payroll $187,920
What was Mandy’s direct labor flexible-budget variance for the month?
102. A company‘s flexible budget for 15,000 units of production showed sales of $48,000,
variable costs of $18,000, and fixed costs of $12,000. The operating income in the master budget
for 20,000 units is: