Question 1: The following materials standards have been established for a particular raw material used in the company's sole product:
Standard quantity per unit of output 1.0 pound
Standard price $16.60 per pound
The following data pertain to operations concerning the product for the last month:
Actual materials purchased 2,200 pounds
Actual cost of materials purchased $34,650
Actual materials used in production 1,900 pounds
Actual output 2,100 units
What is the materials quantity variance for the month?
A) $3,320 F
B) $3,150 F
C) $4,980 U
D) $4,725 U
Question 2: The following standards for variable manufacturing overhead have been established for a company that makes only one product:
Standard hours per unit of output 2.8 hours
Standard variable overhead rate $16.30 per hour
The following data pertain to operations for the last month:
Actual hours 7,600 hours
Actual total variable overhead cost $127,300
Actual output 2,500 units
What is the variable overhead spending variance for the month?
A) $3,420 U
B) $3,150 F
C) $10,050 U
D) $13,200 U
Question 3: The following materials standards have been established for a particular product:
Standard quantity per unit of output 0.2 grams
Standard price $18.90 per gram
The following data pertain to operations concerning the product for the last month:
Actual materials purchased 4,800 grams
Actual cost of materials purchased $86,880
Actual materials used in production 4,200 grams
Actual output 21,080 units
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?
Question 4: The following labor standards have been established for a particular product:
Standard labor hours per unit of output 3.2 hours
Standard labor rate $19.10 per hour
The following data pertain to operations concerning the product for the last month:
Actual hours worked 5,500 hours
Actual total labor cost $105,050
Actual output 1,900 units
Required:
a. What is the labor rate variance for the month?
b. What is the labor efficiency variance for the month?
Question 5: The following standards for variable manufacturing overhead have been established for a company that makes only one product:
Standard hours per unit of output 0.6 hours
Standard variable overhead rate $17.55 per hour
The following data pertain to operations for the last month:
Actual hours 6,200 hours
Actual total variable overhead cost $110,670
Actual output 10,200 units
Required:
a. What is the variable overhead spending variance for the month?
b. What is the variable overhead efficiency variance for the month?