Question

If more direct materials were used than expected at standard: 1)The direct materials efficiency variance would...

If more direct materials were used than expected at standard:

1)The direct materials efficiency variance would be favourable

2)The direct labour efficiency variance would be unfavourable

3)The direct materials price variance would be favourable

4) The direct materials efficiency variance would be unfavourable

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Ans. Option 4

Explanation: If more quantity of direct materials is used than the expected (standard), the direct materials efficiency or usage (quantity) variance would be unfavorable.

*Direct labor efficiency variance is related to used or standard direct labor hours.

*Direct materials price variance shows the variance between standard price and actual price of materials purchased.

*Standard quantity > Actual quantity = Favorable efficiency variance

*Standard quantity < Actual quantity = Unfavorable efficiency variance.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
5. Tractor Corporation produces toy tractors. What is the efficiency variance for direct materials? The company...
5. Tractor Corporation produces toy tractors. What is the efficiency variance for direct materials? The company uses the following direct cost categories: Category Standard Inputs for 1 output Std. Cost per input Direct Materials 4.00 $12.50 Direct Labour 1.40 9.50 Direct Marketing 0.54 5.50 Actual performance for the company is shown below: Actual output: 5,000 units Direct Materials: Materials costs $299,000 Input purchased and used 23,000 Actual price per input $13.00 Direct Manufacturing Labour: Labour costs $95,000 Labour-hours of input...
Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg...
Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg of plastic at $5 per kilogram) $10.00 Direct labour (2 hours at $12 per hour) 24.00 Variable manufacturing overhead 11.85 Fixed manufacturing overhead 6.15 Total standard cost per unit $52.00 Actual costs for producing 2,690 units were as follows: Direct materials used 5,920 kg Direct materials purchased (6,730 kg) $32,304 Direct labour (6,950 hours) $67,415 Variable manufacturing costs $32,200 Fixed manufacturing costs $17,700 1....
Juliet Pants standard cost per pants included 0.20 direct labour hours per pants at $16.00 per...
Juliet Pants standard cost per pants included 0.20 direct labour hours per pants at $16.00 per hour. Juliet Pants actually used 10,350 direct labour hours at a cost of $15.80 per hour to produce 50,000 pants. a) Calculate the direct labour rate variance: $ b) Is the direct labour rate variance favourable or unfavourable? c) Calculate the direct labour efficiency variance: $ d) Is the direct labour efficiency variance favourable or unfavourable? e) Calculate the total direct labour variance: $...
Tractor Corporation produces toy tractors. The company uses the following direct cost categories: Category Standard Inputs...
Tractor Corporation produces toy tractors. The company uses the following direct cost categories: Category Standard Inputs for 1 output Std. Cost per input Direct Materials 4.00 $12.50 Direct Labour 1.40 9.50 Direct Marketing 0.54 5.50 Actual performance and budgeted performance for the company is shown below: Actual output: (in units) 5,000 Direct Materials: Materials costs $299,000 Input purchased and used 23,000 Actual price per input $13.00 Direct Manufacturing Labour: Labour costs $ 95,000 Labour-hours of input 9,500 Actual price per...
Aaha Inc. produces premium protective automotive covers. The direct materials and direct labour standards for one...
Aaha Inc. produces premium protective automotive covers. The direct materials and direct labour standards for one car cover are as follows: Standard Quantity or Hours Standard Price or Rate Standard Cost   Direct materials 9.0 metres of cloth $ 10 per metre $ 90.00   Direct labour 0 hours $ 20 per hour $ 7   Variable overhead 0 hours $ 8 per hour $ 3 Budgeted fixed overhead cost is $17,400, and the normal production volume is 2,885 car covers. Overhead is...
How would a very large Favourable Fixed Overhead Flexible Budget variance cause an unfavourable Labour Efficiency...
How would a very large Favourable Fixed Overhead Flexible Budget variance cause an unfavourable Labour Efficiency Variance and a unfavourable Material Efficiency Variance
8. What does a favourable direct materials price variance indicate? a. The actual cost of materials...
8. What does a favourable direct materials price variance indicate? a. The actual cost of materials purchased was greater than the standard cost of materials purchased. b. The standard cost of materials purchased was less than the actual cost of materials purchased. c. The standard cost of materials purchased was greater than the actual cost of materials purchased. d. The actual quantity of materials used was less than the standard quantity of materials used for actual production. 9. In flexible...
Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg...
Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg of plastic at $5 per kilogram) $10.00 Direct labour (2 hours at $12 per hour) 24.00 Variable manufacturing overhead 11.45 Fixed manufacturing overhead 7.05 Total standard cost per unit $52.50 Actual costs for producing 2,710 units were as follows: Direct materials used 5,990 kg Direct materials purchased (6,440 kg) $30,912 Direct labour (6,820 hours) $68,882 Variable manufacturing costs $32,300 Fixed manufacturing costs $17,600 Calculate...
The Clark Company makes a single product and uses standard costing. Some data concerning this product...
The Clark Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow: Labour rate variance $7,000 favourable Labour efficiency variance $12,000 favourable Variable overhead efficiency variance $4,000 favourable Number of units produced 10,000 Standard labour rate per direct labour hour $12 Standard variable overhead rate per direct labour hour $4 Actual labour hours used 14,000 Actual variable manufacturing overhead costs $58,290 1) What was the variable overhead spending variance for...
The calculation of direct labour variances shows a favourable labour rate variance of​ £5,000 and an...
The calculation of direct labour variances shows a favourable labour rate variance of​ £5,000 and an unfavourable labour efficiency variance of​ £5,000. Which of the following is the best interpretation of this​ result?     A.   The departmental manager was pleased with the efficiency of working and favoured all employees with a rise in wage rates.     B.   The employees worked inefficiently and so their wages were reduced to match the cost of the lost efficiency.     C.   The employees were...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT