Question

1.)

The following company information is available for March. The direct materials price variance is:

  

Direct materials purchased and used	3,400 feet @ $75 per foot
Standard costs for direct materials for March production	3,500 feet @ $73 per foot

$500 favorable.

$6,800 unfavorable.

$7,000 unfavorable.

$6,800 favorable.

$7,000 favorable.

2.)

Georgia, Inc. has collected the following data on one of its products. The direct materials quantity variance is:

   

Direct materials standard (3 lbs @ $1/lb)	$ 3 per finished unit
Total direct materials cost variance—unfavorable	$ 25,750
Actual direct materials used	120,000 lbs
Actual finished units produced	30,000 units

$25,750 unfavorable.

$4,250 favorable.

$30,000 unfavorable.

$30,000 favorable.

$25,750 favorable

3.) Levelor Company's flexible budget shows $10,740 of overhead at 75% of capacity, which was the operating level achieved during May. However, the company applied overhead to production during May at a rate of $2.00 per direct labor hour based on a budgeted operating level of 6,150 direct labor hours (90% of capacity). If overhead actually incurred was $11,216 during May, the controllable variance for the month was:

$476 unfavorable.

$476 favorable.

$1,560 favorable.

$1,560 unfavorable.

$1,084 favorable.

4.)

The standard materials cost to produce 1 unit of Product R is 9 pounds of material at a standard price of $53 per pound. In manufacturing 5,000 units, 44,000 pounds of material were used at a cost of $54 per pound. What is the total direct materials cost variance?

$9,000 unfavorable.

$54,000 unfavorable.

$54,000 favorable.

$9,000 favorable.

$45,000 unfavorable.

Answer 1