Question

# Question 1 is Part A,B,c, and D A. Oliver Enterprises has collected the following data for...

Question 1 is Part A,B,c, and D

A.

Oliver Enterprises has collected the following data for one of its​ products:

 Direct materials standard ​(7 pounds per unit​ @ \$0.56​/lb.) \$3.92 per finished good Direct materials flexible budget variance−unfavorable \$12,000 Actual Direct Materials Used​ (AQU) 35,000 pounds Actual finished goods produced 21,000 units

What is the total actual cost of the direct materials​ used?

A.\$137,200

B.\$82,320

C.\$94,320

D.\$70,320

B. The following information describes a​ company's usage of direct labor in a recent​ period:

 Actual direct labor hours used \$36,000 Actual rate per hour \$24.00 Standard rate per hour \$12.50 Standard hours for units produced 33,500

How much is the direct labor rate​ variance?

A.\$414,000 favorable

B. \$385,250 unfavorable

C. \$414,000 unfavorable

D. \$385,250 favorable

C. The actual cost of direct labor per hour is \$15.75. Two and one half standard direct labor hours are allowed per unit of finished goods. During the current​ period, 3,500 units were produced using 8,450 direct labor hours. The direct labor efficiency variance is \$2,600 favorable. Calculate the standard direct labor rate per hour.

A. \$0.74

B.\$8.67

C. \$15.75

D. \$3.37

D.

Speaker City designs and manufactures high−end home theater speakers. Speaker City uses a standard variable overhead rate of 4.5 hours per unit at a cost of \$12.00 per hour. Data for the month of June shows that Speaker City produce 600 units and recorded actual variable overhead costs of \$46,000.

What is the total variable overhead variance for the month of​June?

A. \$13,600 unfavorable

B. \$38,800 favorable

C. \$13,600 favorable

D. \$38,800 unfavorable

A.

Direct material flexible budget variance = Actual results - Flexible budget

-\$12,000 = Actual results - \$82,320 (21,000*\$3.92)

Actual results = \$82,320-12,000 = \$70,320

The total actual cost of direct material used is \$70,320

Hence option D is correct.

B.

Direct labor rate variance = Actual hours*Standard rate - Actual hours*Actual rate

Direct labor rate variance = 36,000*\$12.50 - 36,000*\$24

Direct labor rate variance = \$450,000 - 864,000 = \$414,000 Unfavorable

Hence option C is correct.

C.

Direct labor efficiency variance = (Standard hours - Actual hours) * Standard rate

\$2,600 = (3,500*2.5 - 8,450) * Standard rate

\$2,600 = 300 * Standard rate

Standard rate = \$2,600 / 300 = \$8.67 per hour

Hence option B is correct.

D.

Total variable overhead variance = Actual variable overhead cost - (Actual output * Standard rate per output)

Total variable overhead variance = \$46,000 - (600*4.5*\$12)

Total variable overhead variance = \$46,000 - \$32,400= \$13,600 Unfavorable

Hence option A is correct.