Problem:
Conrad Corporation has a budget to produce 2,000 units at a variable cost of $3 per unit, but actual production is 1,800 units with an actual cost of $3.20 per unit. What is the flexible budget variance for variable costs for Conrad Corporation?
1. $360 F
2. $360 U
3. $240 F
4. $240 U
Calculate the material price variance for Jumpin" Jiminy based on the following information:
|
Standard
|
Actual
|
|
Quantity of input purchased (Kg)
|
5,000
|
5,200
|
|
Price per kg
|
$3.10
|
$3.05
|
1. $260 F
2. $260 U
3. $360 F
4. $360 U
A company makes bulk cookies sold in restaurants. The following standards have been developed:
|
Standard Inputs for Each batch of cookies
|
Standard price per input
|
|
Direct materials
|
25 kilograms
|
$2 per kilogram
|
|
Direct labour
|
4 hours
|
$15 per hour
|
Each batch of cookies contains 1,000 cookies. During January, production of 100,000 cookies was planned, but 105,000 cookies were actually made. At an actual price of $2.15 per kilogram, 2,250 kilograms of direct materials were purchased and used. The total direct labour cost for the month was $5,600, and the actual pay per hour was $14.00.