Question

11. The principle of exceptions allows managers to focus on correcting variances between

1. standard costs and actual costs
2. variable costs and actual costs
3. competitor’s costs and actual costs
4. competitor’s costs and standard costs

12. Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $4.50; and standard costs for 4,800 pounds of material at $5.10 per pound.

What is the direct materials quantity variance?

a.$1,020 favorable

b.$1,020 unfavorable

c. $900 favorable

d.$900 unfavorable

13. The standard costs and actual costs for direct labor in the manufacture of 2,500 units of product are as follows:

Standard Costs
Direct labor	7,500 hours @ $11.80
Actual Costs
Direct labor	7,400 hours @ $11.40

The direct labor time variance is

a. $1,180 favorable

b. $1,140 unfavorable

           c. $1,180 unfavorable

           d. $1,140 favorable

The following data relate to direct materials costs for February:

Materials cost per yard: standard, $2.00; actual, $2.10

Standard yards per unit: standard, 4.5 yards; actual, 4.75 yards

Units of production: 9,500

14. Calculate the total direct materials cost variance.

a. $9,262.50 unfavorable

b. $9,262.50 favorable

c. $3,780.00 unfavorable

d. $3,562.50 favorable

15. The formula to compute the direct materials price variance is to calculate the difference between

a. Actual costs – (Actual quantity × Standard price)

b. Actual cost + Standard costs

c. Actual cost – Standard costs

d. (Actual quantity × Standard price) – Standard costs

Answer 1

11)	option a
	Standard costs and actual costs
12)	option b
	1020	unfavorable
	Direct materials qty variance
	(Actual qty used - std qty allowed)*standard rate
	(5000-4800)*5.10
	1020	U
13)	option a
	1,180	Favorable
	Direct labor time variance
	(actual hrs - std hrs allowed)*standard rate
	(7400-7500)*11.80
	1180	F
14)	option a
	9262.5
	total direct materials cost variance
	Actual cost - standard cost
	9500*2.10*4.75 -9500*2*4.5
	9262.5	U
15)	option a
	Actual costs - (Actual quantity *Standard price)