Question

Q1:

The standard costs and actual costs for direct materials for the manufacture of 2,600 actual units of product are

Standard Costs
Direct materials (per completed unit)	1,040 kilograms @$8.61
Actual Costs
Direct materials	2,600 kilograms @ $8.20

Round your final answer to the nearest dollar.

The amount of direct materials price variance is

$426 favorable

$426 unfavorable

$1,066 favorable

$1,066 unfavorable

Q2:

The standard costs and actual costs for direct materials for the manufacture of 2,650 actual units of product are

Standard Costs
Direct materials	2,650 kilograms @$8.60
Actual Costs
Direct materials	2,700 kilograms @ $8.05

The amount of the direct materials quantity variance is

$430 unfavorable

$430 favorable

$344 favorable

$344 unfavorable

Q3:

The Flapjack Corporation had 8,200 actual direct labor hours at an actual rate of $12.40 per hour. Original production had been budgeted for 1,100 units, but only 1,000 units were actually produced. Labor standards were 7.6 hours per completed unit at a standard rate of $13.00 per hour.

The labor rate variance is

a.$4,920 favorable

b.$4,920 unfavorable

c.$4,560 unfavorable

d.$4,560 favorable

Q4:

The Flapjack Corporation had 8,200 actual direct labor hours at an actual rate of $12.40 per hour. Original production had been budgeted for 1,100 units, but only 1,000 units were actually produced. Labor standards were 7.6 hours per completed unit at a standard rate of $13.00 per hour.

The labor time variance is

a.$9,880 favorable

b.$9,880 unfavorable

c.$7,800 favorable

d.$7,800 unfavorable

Answer 1

1) The amount of direct materials price variance is =

(Standard Rate per kg - Actual Rate per kg)* Actual Quantity

=(8.61-8.2)2600 = (1066) unfavourable.

2) The amount of the direct materials quantity variance is=

(Standard Quantity for Actual Production - Actual Qunatity)*Standard Rate

=(2650-2700)*8.6 = (430) Unfavourable

3) The labor rate variance is =

(Standard Rate per hour - Actual Rate per hour) * Actual Hours Worked

= (13-12.4)*8200 = 4920 Favourable

4) The labor time variance is

( Standard Hour for Actual Production - Actual Hour) *Standard Rate

= [ (1000*7.6) - (8200) ] * 13

= (7800) Unfavourable