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Exam 10: Standard Costs and Variances

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Question 131

True/False

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If skilled workers with high hourly rates of pay are given duties that require little skill and call for lower hourly rates of pay,this will result in a favorable labor rate variance.

A) True
B) False

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Question 132

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The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the materials quantity variance for the month?

A) $9,940 U
B) $15,351 U
C) $14,484 U
D) $10,535 U

E) C) and D)
F) B) and C)

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Question 133

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The direct labor standards for a particular product are 4 hours of direct labor at $12.00 per direct labor-hour = $48.00.During October,3,350 units of this product were made,which was 150 units less than budgeted.The labor cost incurred was $159,786 and 13,450 direct labor-hours were worked.The direct labor variances for the month were:

Lido Company's standard and actual costs per unit for the most recent period,during which 500 units were actually produced,are given below: All of the materials purchased during the period were used in production during the period. Required: From the foregoing information,compute the following variances.Indicate whether the variance is favorable (F)or unfavorable (U): a.Material price variance. b.Material quantity variance. c.Labor rate variance. d.Labor efficiency variance. e.Variable overhead rate variance. f.Variable overhead efficiency variance.

Devoto Inc. has provided the following data concerning one of the products in its standard cost system. The company has reported the following actual results for the product for June: -The raw materials price variance for the month is closest to:

Magno Cereal Corporation uses a standard cost system for its "crunchy pickle" cereal.The materials standard for each batch of cereal produced is 1.4 pounds of pickles at a standard cost of $3.00 per pound.During the month of August,Magno purchased 78,000 pounds of pickles at a total cost of $253,500.Magno used all of these pickles to produce 60,000 batches of cereal.What is Magno's materials quantity variance for August?

The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: -What is the labor efficiency variance for the month?