8-481
63.
Hejl Catering uses two measures of activity, jobs and meals, in the cost formulas in its
budgets and performance reports. The cost formula for catering supplies is $210 per
month plus $86 per job plus $15 per meal. A typical job involves serving a number of meals
to guests at a corporate function or at a host’s home. The company expected its activity in
March to be 23 jobs and 222 meals, but the actual activity was 28 jobs and 217 meals. The
actual cost for catering supplies in March was $5,830. The spending variance for catering
supplies in March would be closest to:
8-482
64.
Gershon Air uses two measures of activity, flights and passengers, in the cost formulas in
its budgets and performance reports. The cost formula for plane operating costs is
$38,720 per month plus $2,061 per flight plus $9 per passenger. The company expected its
activity in June to be 76 flights and 238 passengers, but the actual activity was 75 flights
and 239 passengers. The actual cost for plane operating costs in June was $196,310. The
spending variance for plane operating costs in June would be closest to:
65.
Krejci Air uses two measures of activity, flights and passengers, in the cost formulas in its
budgets and performance reports. The cost formula for plane operating costs is $41,430
per month plus $2,419 per flight plus $6 per passenger. The company expected its activity
in March to be 84 flights and 222 passengers, but the actual activity was 81 flights and
220 passengers. The actual cost for plane operating costs in March was $239,870. The
plane operating costs in the planning budget for March would be closest to:
66.
Sekuterski Air uses two measures of activity, flights and passengers, in the cost formulas
in its budgets and performance reports. The cost formula for plane operating costs is
$45,700 per month plus $2,892 per flight plus $4 per passenger. The company expected its
activity in November to be 81 flights and 283 passengers, but the actual activity was 80
flights and 282 passengers. The actual cost for plane operating costs in November was
$286,360. The plane operating costs in the flexible budget for November would be closest
to:
67.
The Swenson Corporation has a standard costing system. The following data are available
for June:
Actual quantity of direct materials purchased
35,000
pounds
Standard price of direct materials
$4
per pound
Material price variance
$7,000
unfavorable
Material quantity variance
$4,200
favorable
The actual price per pound of direct materials purchased in June is:
68.
The following materials standards have been established for a particular product:
Standard quantity per
unit of output
1.7
meters
Standard price
$19.80
per
meter
The following data pertain to operations concerning the product for the last month:
Actual materials
purchased
5,800
meters
Actual cost of
materials purchased
$113,680
Actual materials used
in production
5,100
meters
Actual output
3,200
units
What is the materials quantity variance for the month?
69.
The standard cost card for one unit of a certain finished product shows the following:
Standard Quantity or
Hours
Standard Price or
Rate
Direct materials
10 pounds
$? per pound
Direct labor
2.5 hours
$16 per hour
Variable manufacturing
overhead
1.5 hours
$10 per hour
If the total standard variable cost for one unit of finished product is $85, then the
standard price per pound for direct materials is:
70.
The standards for direct materials in making a certain product are 20 pounds at $0.75 per
pound. During the past period, 56,000 units of product were made and the materials
quantity variance was $30,000 U. The number of pounds of direct material used during the
period amounted to:
71.
The standard cost card for a product indicates that one unit of the product requires 8
kilograms of a raw material at $0.80 per kilogram. The production of the product in April
was 870 units, but production had been budgeted for 850 units. During April, 8,200
kilograms of the raw material were purchased for $6,888 and 7,150 kilograms of the raw
material were used in production. The material variances for April were:
Material Price Variance
Material Quantity Variance
A)
$286 U
$152 U
B)
$286 U
$280 U
C)
$328 U
$152 U
D)
$328 U
$280 U
72.
The following materials standards have been established for a particular product:
Standard quantity per
unit of output
8.3
grams
Standard price
$19.15
per
gram
The following data pertain to operations concerning the product for the last month:
Actual materials
purchased
7,500
grams
Actual cost of
materials purchased
$141,375
Actual materials used
in production
7,100
grams
Actual output
700
units
What is the materials price variance for the month?
73.
A quantity of a particular raw material was purchased for $43,250. The standard cost of
the material was $2.00 per kilogram and there was an unfavorable materials price variance
of $3,250. How many kilograms were purchased?
74.
Dreary Credit Agency uses a standard cost system for the processing of its credit
applications. The labor standard at Dreary is 10 applications per 8 hour day at a standard
cost of $15 per hour.
During the last pay period, Dreary’s credit agents worked 1,920 hours and processed 2,500
applications. The total labor cost for the agents during this period was $29,184. What was
Dreary’s labor efficiency variance for this last pay period?
8-493
75.
Blue Corporation’s standards call for 2,500 direct labor-hours to produce 1,000 units of
product. During May 900 units were produced and the company worked 2,400 direct labor-
hours. The standard hours allowed for May production would be:
76.
The Hanson Corporation employs a standard costing system. The following data are
available for February:
Actual direct labor-
hours worked
6,500
hours
Standard direct labor
rate
$8
per hour
Labor rate variance
$2,600
Favorable
The actual direct labor rate for February is:
77.
The following labor standards have been established for a particular product:
Standard labor-hours
per unit of output
8.3
hours
Standard labor rate
$12.10
per
hour
The following data pertain to operations concerning the product for the last month:
Actual hours worked
6,100
hours
Actual total labor cost
$71,370
Actual output
900
units
What is the labor efficiency variance for the month?
78.
The standard cost card of a particular product specifies that it requires 4.5 direct labor-
hours at $12.80 per direct labor-hour. During March, 2,300 units of the product were
produced and direct labor wages of $128,300 were incurred. A total of 11,700 direct labor-
hours were worked. The direct labor variances for the month were:
Labor Rate Variance
Labor Efficiency Variance
A)
$4,180 F
$14,804 U
B)
$4,180 F
$17,280 U
C)
$21,460 F
$14,804 U
D)
$21,460 F
$17,280 U
79.
Krizum Industries makes heavy construction equipment. The standard for a particular
crane calls for 24 direct labor-hours at $16 per direct labor-hour. During a recent period
850 cranes were made. The labor rate variance was zero and the labor efficiency variance
was $8,800 unfavorable. How many actual direct labor-hours were worked?
80.
The Fischer Corporation uses a standard costing system. The following data have been
assembled for December:
Actual direct
labor-hours
worked
5,800
hours
Standard direct
labor rate
$9
per hour
Labor efficiency
variance
$1,800
unfavorable
The standard hours allowed for December’s production is:
81.
The following labor standards have been established for a particular product:
Standard labor-hours
per unit of output
1.7
hours
Standard labor rate
$14.05
per
hour
The following data pertain to operations concerning the product for the last month:
Actual hours worked
3,700
hours
Actual total labor cost
$50,690
Actual output
2,300
units
What is the labor rate variance for the month?
82.
The following standards for variable manufacturing overhead have been established for a
company that makes only one product:
Standard hours per unit
of output
7.8
hours
Standard variable
overhead rate
$12.55
per
hour
The following data pertain to operations for the last month:
Actual hours
2,900
hours
Actual total variable
manufacturing overhead
cost
$36,975
Actual output
200
units
What is the variable overhead efficiency variance for the month?