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Solved by verified expert :101. A company uses 20,000 pounds of materials
for which it paid \$6.00 a pound. The materials price variance was \$15,000
unfavorable. What is the standard price per pound?
a. \$0.75
b. \$5.25
c. \$6.00
d. \$6.75

102. If the materials price variance is \$3,600 F
and the materials quantity and labor variances are each \$2,700 U, what is the
total materials variance?
a. \$3,600
F
b. \$2,700
U
c. \$900
F
d. \$4,050
U

103. Edgar, Inc. has a materials price standard
of \$2.00 per pound. Six thousand pounds of materials were purchased at \$2.20 a
pound. The actual quantity of materials used was 6,000 pounds, although the
standard quantity allowed for the output was 5,400 pounds.

Edgar, Inc.’s materials price variance
is
a. \$120
U.
b. \$1,200
U.
c. \$1,080
U.
d. \$1,200
F.

104. Edgar, Inc. has a materials price standard
of \$2.00 per pound. Six thousand pounds of materials were purchased at \$2.20 a
pound. The actual quantity of materials used was 6,000 pounds, although the
standard quantity allowed for the output was 5,400 pounds.

Edgar, Inc.’s materials quantity
variance is
a. \$1,200
U.
b. \$1,200
F.
c. \$1,320
F.
d. \$1,320
U.

105. Edgar, Inc. has a materials price standard
of \$2.00 per pound. Six thousand pounds of materials were purchased at \$2.20 a
pound. The actual quantity of materials used was 6,000 pounds, although the
standard quantity allowed for the output was 5,400 pounds.

Edgar, Inc.’s total materials variance
is
a. \$2,400
U.
b. \$2,400
F.
c. \$2,520
U.
d. \$2,520
F.

106. The standard quantity
allowed for the units produced was 4,500 pounds, the standard price was \$2.50
per pound, and the materials quantity variance was \$375 favorable. Each unit
uses 1 pound of materials. How many units were actually produced?
a. 4,350
b. 4,500
c. 11,625
d. 4,650

107. The matrix approach to variance analysis
a. will
yield slightly different variances than the formula approach.
b. is
more accurate than the formula approach.
c. does
not separate the price and quantity variance calculations.
d. provides
a convenient structure for determining each variance.

108. Labor efficiency is measured by the
a. materials
quantity variance.
b. total
labor variance.
c. labor
quantity variance.
d. labor
rate variance.

109. An unfavorable labor quantity variance may
be caused by
a. paying
workers higher wages than expected.
b. misallocation
of workers.
c. worker
fatigue or carelessness.
d. higher
pay rates mandated by union contracts.

110. The investigation of materials price
variance usually begins in the
a. first
production department.
department.
c. controller’s
office.
d. accounts
payable department.

111. The investigation of a materials quantity
variance usually begins in the
a. production
department.
department.
c. sales
department.
d. controller’s
department.

112. If the labor quantity variance is
unfavorable and the cause is inefficient use of direct labor, the
responsibility rests with the
a. sales
department.
b. production
department.
c. budget
office.
d. controller’s
department.

113. Monster Company produces a product
requiring 3 direct labor hours at \$16.00 per hour. During January, 2,000
products are produced using 6,300 direct labor hours. Monster’s actual payroll
during January was \$98,280. What is the
labor quantity variance?
a. \$2,280
U
b. \$4,800
F
c. \$2,520
F
d. \$4,800
U

114. A
company developed the following per-unit standards for its product: 2 gallons
of direct materials at \$8 per gallon. Last month, 3,000 gallons of direct
materials were purchased for \$22,800.
The direct materials price variance for last month was
a. \$22,800
favorable.
b. \$600
favorable.
c. \$1,200
favorable.
d. \$1,200
unfavorable.

115. The per-unit standards for direct materials
are 2 pounds at \$5 per pound. Last month, 11,200 pounds of direct materials
that actually cost \$53,000 were used to produce 6,000 units of product. The
direct materials quantity variance for last month was
a. \$4,000
favorable.
b. \$3,000
favorable.
c. \$4,000
unfavorable.
d. \$7,000
unfavorable.

116. The per-unit standards for direct labor are
1.5 direct labor hours at \$15 per hour. If in producing 2,400 units, the actual
direct labor cost was \$46,000 for 3,000 direct labor hours worked, the total
direct labor variance is
a. \$2,400
unfavorable.
b. \$8,000
favorable.
c. \$5,000
unfavorable.
d. \$8,000
unfavorable.

117. The
standard rate of pay is \$12 per direct labor hour. If the actual direct labor payroll was \$47,040
for 4,000 direct labor hours worked, the direct labor price (rate) variance is
a. \$960
unfavorable.
b. \$960
favorable.
c. \$1,200
unfavorable.
d. \$1,200
favorable.

118. The
standard number of hours that should have been worked for the output attained
is 10,000 direct labor hours and the actual number of direct labor hours worked
was 10,500. If the direct labor price variance was \$10,500 unfavorable, and the
standard rate of pay was \$12 per direct labor hour, what was the actual rate of
pay for direct labor?
a. \$11
per direct labor hour
b. \$9
per direct labor hour
c. \$13
per direct labor hour
d. \$12
per direct labor hour

119. A
company purchases 12,000 pounds of materials. The materials price variance is
\$6,000 favorable. What is the difference between the standard and actual price
paid for the materials?
a. \$1.00
b. \$.50
c. \$2.00
d. \$6.00

120. A company uses 40,000 gallons of materials
for which they paid \$7.00 a gallon. The materials price variance was \$80,000
favorable. What is the standard price
per gallon?
a. \$2
b. \$5
c. \$7
d. \$9

121. All
Urban Company produces a product requiring 4 pounds of material costing \$3.50 per
pound. During December, All Urban purchased 4,200 pounds of material for \$14,112
and used the material to produce 500 products. What was the materials price
variance for December?
a. \$560
F
b. \$588
F
c. \$112
U
d. \$672
U

122. Shipp,
Inc. manufactures a product requiring two pounds of direct material. During 2013,
Shipp purchases 24,000 pounds of material for \$99,200 when the standard price
per pound is \$4. During 2013, Shipp uses 22,000 pounds to make 12,000 products.
The standard direct material cost per unit of finished product is
a. \$8.27.
b. \$9.01.
c. \$8.00.
d. \$8.53.

123. Clark
Company manufactures a product with a standard direct labor cost of two hours
at \$18.00 per hour. During July, 2,000 units were produced using 4,200 hours at
\$18.30 per hour. The labor quantity variance was
a. \$3,660
F.
b. \$3,600
U.
c. \$2,460
U.
d. \$3,660
U.

124. Clark
Company manufactures a product with a standard direct labor cost of two hours
at \$18.00 per hour. During July, 2,000 units were produced using 4,200 hours at
\$18.30 per hour. The labor price variance was
a. \$1,260
U.
b. \$4,860
U.
c. \$4,860
F.
d. \$3,600
U.

125. A
company developed the following per unit materials standards for its
product: 3 pounds of direct materials at
\$5 per pound. If 12,000 units of product were produced last month and 37,500
pounds of direct materials were used, the direct materials quantity variance
was
a. \$4,500
favorable.
b. \$7,500
unfavorable.
c. \$4,500
unfavorable.
d. \$7,500
favorable.

126. The standard direct labor cost for
producing one unit of product is 5 direct labor hours at a standard rate of pay
of \$20. Last month, 15,000 units were produced and 73,500 direct labor hours
were actually worked at a total cost of \$1,350,000. The direct labor quantity
variance was
a. \$30,000
unfavorable.
b. \$45,000
unfavorable.
c. \$45,000
favorable.
d. \$30,000
favorable.

127. Atkins,
Inc. produces a product requiring 8 pounds of material at \$1.50 per pound. Atkins
produced 10,000 units of this product during 2013 resulting in a \$30,000
unfavorable materials quantity variance. How many pounds of direct material did
Atkins use during 2013?
a. 100,000
pounds
b. 80,000
pounds
c. 160,000
pounds
d. 125,000
pounds

128. Dillon has a standard of 1.5 pounds of
materials per unit, at \$6 per pound. In producing 2,000 units, Dillon used
3,100 pounds of materials at a total cost of \$18,135. Dillon’s total variance
is
a. \$450
F.
b. \$135
U.
c. \$465
U.
d. \$600
U.

129. Dillon has a standard of 1.5 pounds of
materials per unit, at \$6 per pound. In producing 2,000 units, Dillon used
3,100 pounds of materials at a total cost of \$18,135. Dillon’s materials price
variance is
a. \$135
U.
b. \$465
F.
c. \$600
F.
d. \$1,050
F.

130. Dillon has a standard of 1.5 pounds of
materials per unit, at \$6 per pound. In producing 2,000 units, Dillon used
3,100 pounds of materials at a total cost of \$18,135. Dillon’s materials
quantity variance is
a. \$135
F.
b. \$465
U.
c. \$600
U.
d. \$1,050
U.

131. Dillon has a standard of 2 hours of labor
per unit, at \$12 per hour. In producing 2,000 units, Dillon used 3,850 hours of
labor at a total cost of \$46,970. Dillon’s total labor variance is
a. \$1,030
U.
b. \$800
U.
c. \$-1,030
F.
d. \$1,930
F.

132. Dillon has a standard of 2 hours of labor
per unit, at \$12 per hour. In producing 2,000 units, Dillon used 3,850 hours of
labor at a total cost of \$46,970. Dillon’s labor price variance is
a. \$770
U.
b. \$800
U.
c. \$1,030
F.
d. \$1,930
F.

133. Dillon has a standard of 2 hours of labor
per unit, at \$12 per hour. In producing 2,000 units, Dillon used 3,850 hours of
labor at a total cost of \$46,970. Dillon’s labor quantity variance is
a. \$770
U.
b. \$770
F.
c. \$1,800
F.
d. \$1,930
F.

134. Which one of the following describes the total overhead variance?
a. The
difference between what was actually incurred and the flexible budget amount
b. The
difference between what was actually incurred and overhead applied
c. The
difference between the overhead applied and the flexible budget amount
d. The
difference between what was actually incurred and the total
production budget

135. Manufacturing
overhead costs are applied to work in process on the basis of
a. actual
hours worked.
b. standard
hours allowed.
c. ratio
of actual variable to fixed costs.
d. actual

136. The
varianceis the difference between the
a. actual
b. actual
costs applied based on actual hoursand
overhead costs applied based on standard hours
allowed.
d. the
actual overhead costs and the standard
direct labor costs.

137. The predetermined overhead rate for Zane
Company is \$5, comprised of a variable overhead rate of \$3 and a fixed rate of
\$2. The amount of budgeted overhead costs at normal capacity of \$150,000 was
divided by normal capacity of 30,000 direct labor hours, to arrive at the
predetermined overhead rate of \$5. Actual overhead for June was \$9,500 variable
and \$6,050 fixed, and standard hours allowed for the product produced in June
was 3,000 hours. The total overhead
variance is
a. \$3,050
F.
b. \$550
F.
c. \$550
U.
d. \$3,050
U.

138. The predetermined
overhead rate for Zane Company is \$5, comprised of a variable overhead rate of
\$3 and a fixed rate of \$2. The amount of budgeted overhead costs at normal
capacity of \$150,000 was divided by normal capacity of 30,000 direct labor
hours, to arrive at the predetermined overhead rate of \$5. Actual overhead for
June was \$8,900 variable and \$5,400 fixed, and 1,500 units were produced. The
direct labor standard is 2 hours per unit produced. The total overhead variance is
a. \$1,800
F.
b. \$700
F.
c. \$700
U.
d. \$1,800
U.

139. Which of the following
is true?
a. The form, content, and frequency of variance
reports vary considerably among companies.
b. The form, content,
and frequency of variance reports do not vary among companies.
c. The
form and content of variance reports vary considerably among companies, but the
frequency is always weekly.
d. The
form and content of variance reports are consistent among companies, but the
frequency varies.

140. Denmark Corporation’s variance report for
the purchasing department reports 1,000 units of material A purchased and 2,400
units of material B purchased. It also reports standard prices of \$2 for
Material A and \$3 for Material B. Actual prices reported are \$2.10 for Material
A and \$2.80 for Material B. Denmark should report a total price variance of
a. \$380
F.
b. \$340
F.
c. \$340
U.
d. \$380
U.

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