1) Agnew Corporation uses a standard cost system. The following information was provided for the period that just ended:
- Actual price per kilogram $1.76
- Actual kilograms of material used 61,500
- Actual hourly labor rate $20.60
- Actual hours of production 8,850
- Standard price per kilogram $1.80
- Standard kilograms per completed unit 5 kilograms
- Standard hourly labor rate $20.00
- Standard time per completed unit 3/4 hr.
- Actual total factory overhead $64,500
- Fixed factory overhead $30,000
- Standard fixed factory overhead rate $3.00 per labor hour
- Standard variable factory overhead rate $5.00 per labor hour
- Maximum plant capacity 10,000 hours
- Plant operated during the period 9,000 hours
- Units completed during the period 12,000
The direct materials quantity variance is:
a. $2,700 favorable
b. $2,460 favorable
c. $2,460 unfavorable
d. $2,700 unfavorable
2) Frogue Corporation uses a standard cost system. The following information was provided for the period that just ended:
- Actual price per kilogram $3.00
- Actual kilograms of material used 31,000
- Actual hourly labor rate $18.10
- Actual hours of production 4,900 labor hours
- Standard price per kilogram $2.80
- Standard kilograms per completed unit 6 kilograms
- Standard hourly labor rate $18.00
- Standard time per completed unit 1 hr.
- Actual total factory overhead $34,900
- Fixed factory overhead $18,000
- Standard fixed factory overhead rate $1.20 per labor hour
- Standard variable factory overhead rate $3.80 per labor hour
- Maximum plant capacity 15,000 hours
- Plant operated during the period 10,000 hours
- Units completed during the period 5,000
The variable factory overhead controllable variance is:
a. $6,000 favorable
b. $2,100 favorable
c. $2,100 unfavorable
d. $6,000 unfavorable