Question

# Q1: The standard costs and actual costs for direct materials for the manufacture of 2,600 actual...

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

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

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

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