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93) A company has established 5 pounds of Material J at $2 per pound as the standard for the material
in its Product Z. The company has just produced 1,000 units of this product, using 5,200 pounds of
Material J that cost $9,880.The direct materials price variance is:
A) $120 favorable.
B) $520 unfavorable.
C) $400 favorable.
D) $520 favorable.
E) $400 unfavorable.
94) A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. The job consisted of
8,000 units and was completed in 22,000 hours at a total labor cost of $198,000. What is the total
labor cost variance?
A) $9,000 unfavorable.
B) $2,000 unfavorable.
C) $8,000 unfavorable.
D) $6,000 unfavorable.
E) $3,000 unfavorable.
95) A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. The job consisted of
8,000 units and was completed in 22,000 hours at a total labor cost of $198,000. What is the direct
labor rate variance?
A) $16,000 unfavorable.
B) $22,000 unfavorable.
C) $6,000 unfavorable.
D) $22,000 favorable.
E) $16,000 favorable.
65
96) A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. The job consisted of
8,000 units and was completed in 22,000 hours at a total labor cost of $198,000. What is the direct
labor efficiency variance?
A) $16,000 unfavorable.
B) $6,000 unfavorable.
C) $22,000 unfavorable.
D) $16,000 favorable.
E) $22,000 favorable.
97) The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard
price of $50 per pound. In manufacturing 8,000 units, 47,000 pounds of material were used at a
cost of $51 per pound. What is the total direct materials cost variance?
A) $51,000 favorable.
B) $3,000 unfavorable.
C) $48,000 unfavorable.
D) $51,000 unfavorable.
E) $3,000 favorable.
98) The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard
price of $50 per pound. In manufacturing 8,000 units, 47,000 pounds of material were used at a
cost of $51 per pound. What is the direct materials price variance?
A) $3,000 favorable.
B) $50,000 unfavorable.
C) $47,000 favorable.
D) $47,000 unfavorable.
E) $50,000 favorable.
99) The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard
price of $50 per pound. In manufacturing 8,000 units, 47,000 pounds of material were used at a
cost of $51 per pound. What is the direct materials quantity variance?
A) $3,000 favorable.
B) $47,000 unfavorable.
C) $50,000 unfavorable.
D) $50,000 favorable.
E) $47,000 favorable.
100) The following information describes a company's usage of direct labor in a recent period. The direct
labor efficiency variance is:
Actual hours used
45,000
Actual rate per hour
$ 15.00
Standard rate per hour
$ 14.50
Standard hours for units produced
47,000
A) $29,000 unfavorable.
B) $29,000 favorable.
C) $52,500 unfavorable.
D) $52,500 favorable.
E) $22,500 unfavorable.
101) The following information describes a company's usage of direct labor in a recent period. The direct
labor rate variance is:
Actual hours used
45,000
Actual rate per hour
$ 15.00
Standard rate per hour
$ 14.50
Standard hours for units produced
47,000
A) $52,500 favorable.
B) $22,500 unfavorable.
C) $29,000 unfavorable.
D) $29,000 favorable.
E) $52,500 unfavorable.
73
102) The following information describes a company's usage of direct labor in a recent period. The total
direct labor cost variance is:
Actual hours used
45,000
Actual rate per hour
$ 15.00
Standard rate per hour
$ 14.50
Standard hours for units produced
47,000
A) $6,500 unfavorable.
B) $22,500 favorable.
C) $6,500 favorable.
D) $29,000 favorable.
E) $22,500 unfavorable.
74
103) A company uses the following standard costs to produce a single unit of output.
Direct materials
6 pounds at $0.90 per pound
=
$ 5.40
Direct labor
0.5 hour at $12.00 per hour
=
$ 6.00
Manufacturing overhead
0.5 hour at $4.80 per hour
=
$ 2.40
75
During the latest month, the company purchased and used 58,000 pounds of direct materials at a
price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled
$56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred
totaled $15,000 and fixed manufacturing overhead incurred was $10,400. Based on this
information, the direct materials price variance for the month was:
A) $1,800 favorable
B) $1,000 favorable
C) $1,800 unfavorable
D) $5,800 unfavorable
E) $6,000 unfavorable
104) A company uses the following standard costs to produce a single unit of output.
Direct materials
6 pounds at $0.90 per pound
=
$ 5.40
Direct labor
0.5 hour at $12.00 per hour
=
$ 6.00
Manufacturing overhead
0.5 hour at $4.80 per hour
=
$ 2.40
During the latest month, the company purchased and used 58,000 pounds of direct materials at a
price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled
$56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred
totaled $15,000 and fixed manufacturing overhead incurred was $10,400. Based on this
information, the direct materials quantity variance for the month was:
A) $5,800 favorable
B) $5,800 unfavorable
C) $1,000 favorable
D) $1,800 favorable
E) $1,800 unfavorable
105) A company uses the following standard costs to produce a single unit of output.
Direct materials
6 pounds at $0.90 per pound
=
$ 5.40
Direct labor
0.5 hour at $12.00 per hour
=
$ 6.00
Manufacturing overhead
0.5 hour at $4.80 per hour
=
$ 2.40
During the latest month, the company purchased and used 58,000 pounds of direct materials at a
price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled
$56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred
totaled $15,000 and fixed manufacturing overhead incurred was $10,400. Based on this
information, the total direct materials cost variance for the month was:
A) $5,800 unfavorable
B) $4,000 favorable
C) $1,800 favorable
D) $4,000 unfavorable
E) $5,800 favorable
106) A company uses the following standard costs to produce a single unit of output.
Direct materials
6 pounds at $0.90 per pound
=
$ 5.40
Direct labor
0.5 hour at $12.00 per hour
=
$ 6.00
Manufacturing overhead
0.5 hour at $4.80 per hour
=
$ 2.40
During the latest month, the company purchased and used 58,000 pounds of direct materials at a
price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled
$56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred
totaled $15,000 and fixed manufacturing overhead incurred was $10,400. Based on this
information, the direct labor rate variance for the month was:
A) $1,200 unfavorable
B) $2,450 favorable
C) $3,650 favorable
D) $1,200 favorable
E) $3,650 unfavorable
107) A company uses the following standard costs to produce a single unit of output.
Direct materials
6 pounds at $0.90 per pound
=
$ 5.40
Direct labor
0.5 hour at $12.00 per hour
=
$ 6.00
Manufacturing overhead
0.5 hour at $4.80 per hour
=
$ 2.40
During the latest month, the company purchased and used 58,000 pounds of direct materials at a
price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled
$56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred
totaled $15,000 and fixed manufacturing overhead incurred was $10,400. Based on this
information, the direct labor efficiency variance for the month was:
A) $3,650 favorable
B) $2,450 unfavorable
C) $2,450 favorable
D) $1,200 unfavorable
E) $1,200 favorable
108) A company uses the following standard costs to produce a single unit of output.
Direct materials
6 pounds at $0.90 per pound
=
$ 5.40
Direct labor
0.5 hour at $12.00 per hour
=
$ 6.00
Manufacturing overhead
0.5 hour at $4.80 per hour
=
$ 2.40
During the latest month, the company purchased and used 58,000 pounds of direct materials at a
price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled
$56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred
totaled $15,000 and fixed manufacturing overhead incurred was $10,400. Based on this
information, the total direct labor cost variance for the month was:
A) $3,650 favorable
B) $2,450 unfavorable
C) $2,450 favorable
D) $1,200 unfavorable
E) $1,200 favorable
109) Overhead cost variance is:
A) The costs that should be incurred under normal conditions to produce a specific product (or
component) or to perform a specific service.
B) The difference between the overhead costs actually incurred and the overhead budgeted at the
actual operating level.
C) The difference between the actual overhead incurred during a period and the standard
overhead applied.
D) The difference between the total overhead cost that would have been expected if the actual
operating volume had been accurately predicted and the amount of overhead cost that was
allocated to products using the standard overhead rate.
E) The difference between actual and budgeted cost caused by the difference between the actual
price per unit and the budgeted price per unit.
110) The difference between actual overhead costs incurred and the budgeted overhead costs based on a
flexible budget is the:
A) Controllable variance.
B) Quantity variance.
C) Volume variance.
D) Price variance.
E) Production variance.
