1. Luma Inc. has provided the following data concerning one of the products in its standard cost system.
Inputs | Standard Quantity or Hours per Unit of Output | Standard Price or Rate |
Direct materials | 4.8 ounces | $6.90 per ounce |
The company has reported the following actual results for the product for September:
Actual output | 2,100 | units | |
Raw materials purchased | 10,500 | ounces | |
Actual price of raw materials | $ | 7.80 | per ounce |
Actual cost of raw materials purchased | $ | 81,900 | |
Raw materials used in production | 10,090 | ounces | |
The raw materials quantity variance for the month is closest to:
Multiple Choice
$69 F
$78 F
$69 U
$78 U
2. Devoto Inc. has provided the following data concerning one of the products in its standard cost system.
Inputs | Standard Quantity or Hours per Unit of Output | Standard Price or Rate |
Direct materials | 6.6 grams | $7.70 per gram |
The company has reported the following actual results for the product for June:
Actual output | 9,200 | units | |
Raw materials purchased | 64,500 | grams | |
Actual cost of raw materials purchased | $ | 548,250 | |
Raw materials used in production | 60,710 | grams | |
The raw materials quantity variance for the month is closest to:
Multiple Choice
$77 U
$85 F
$85 U
$77 F
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