1. The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys:
| Quantity of direct materials used | 4,200 lbs. |
| Actual unit price of direct materials | $3.80 per lb. |
| Units of finished product manufactured | 1,010 units |
| Standard direct materials per unit of finished product | 4 lbs. |
| Direct materials quantity variance—unfavorable | $624 |
| Direct materials price variance—favorable | $420 |
Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or the end of the month. If required, round your standard cost per unit answer to two decimal places.
| Product finished | units | |
| Standard finished product for direct materials used | units | |
| Deficiency of finished product for materials used | units | |
| Standard cost for direct materials | $ | per unit |
2. The following data relate to labor cost for production of 5,500 cellular telephones:
| Actual: | 3,710 hrs. at $13.60 | |
| Standard: | 3,650 hrs. at $13.80 |
a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Rate variance | $ | Favorable |
| Time variance | $ | Unfavorable |
| Total direct labor cost variance | $ | Unfavorable |
3. The following data relate to factory overhead cost for the production of 4,000 computers:
| Actual: | Variable factory overhead | $108,600 |
| Fixed factory overhead | 24,000 | |
| Standard: | 4,000 hrs. at $32 | 128,000 |
If productive capacity of 100% was 6,000 hours and the total factory overhead cost budgeted at the level of 4,000 standard hours was $136,000, determine the variable factory overhead Controllable Variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $4 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Variance | Amount | Favorable/Unfavorable |
| Controllable variance | $ | Favorable |
| Volume variance | $ | Unfavorable |
| Total factory overhead cost variance | $ | Unfavorable |
4. De Soto Inc. produces tablet computers. The company uses Thin Film Crystal (TFC) LCD displays for its products. Each tablet uses one display. The company produced 770 tablets during July. However, due to LCD defects, the company actually used 800 LCD displays during July. Each display has a standard cost of $12.50. Eight hundred LCD displays were purchased for July production at a cost of $9,400.
Determine the price variance, quantity variance, and total direct materials cost variance for July.
Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Price variance | $ | Favorable |
| Quantity variance | $ | Unfavorable |
| Total direct materials cost variance | $ | Favorable |
According to the given information
Actual Quantity of Materuals = 4200 lbs
Actual Rate = 3.80 per lb
Units Manufactured = 1010 units
Standard Direct material per unit manufactured = 4 lbs per unit
Standard Direct material Cost per unit of finished good = 4 lbs per unit * 3.80 per Lb = $ 15.20 per unit
Product finished= 1010 units
Standard finished product for direct materials used = 4200 / 4 = 1050 units
Deficiency of finished products for materials used = 1050 units to be mfg - 1010 units mfg = 40 units
Standard Cost of direct materials = Units mfg * SQ * SR = 1010*4*3.8 = $ 15352
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