Questions -
Q1. Marv Company's direct labor costs for manufacturing its only product were as follows for October:
Standard direct labor hours per unit of product 1.8
Budgeted finished units for the period 5,300
Number of finished units produced 4,500
Standard rate per direct labor hour (SP) $18.00
Direct labor costs incurred $183,000
Actual wage rate per direct labor hour (AP) $15.80
The total direct labor variance for October was:
$37,200 unfavorable
$25,481 favorable
$62,681 favorable
$62,681 unfavorable
$72,681 unfavorable
Q2. Norio Manufacturing uses powdered plastics (PPS) to manufacture a high-pressure board used in digital equipment, Flex 10. Information concerning its operation in June is as follows:
Budgeted units of Flex 10 for June 5,600
Budgeted usage of FPS 51,500 pounds
Number of units of Flex 10 manufactured 4,500
PFS purchased 48,690 pounds
PFS used 44,600 pounds
Total actual cost of FPS used $250,390
Direct materials usage variance - unfavorable $23,780
The cost of PPS in the flexible budget for the number of units manufactured this period is:
$329,778
$273,352
$250,390
$305,998
$289,879
Q3. Information concerning Johnston Co.'s direct materials costs is as follows:
Standard price per pound $7.18
Actual quantity purchased 3,186
Actual quantity used in production 3,112
Units of production manufactured 770
Materials purchased-price variance - favorable $942
Budget data for the period
Units to manufacture 1,100
Units of direct materials 4,500
The direct materials usage variance for the period is:
$273 favorable
$373 unfavorable
$423 unfavorable
$373 favorable
$273 unfavorable
Q4. Lucky Company's direct labor information for the month of February is as follows:
Actual direct labor hours worked (AQ) 54,400
Standard direct labor hours allowed (SQ) 55,900
Total payroll for direct labor $695,880
Direct labor efficiency variance $16,000
The actual direct labor rate per hour (AP) is:
$13.79
$12.79
$12.23
$10.67
$11.67
Q5. Lucky Company's direct labor information for the month of February is as follows:
Actual direct labor hours worked (AQ) 62,700
Standard direct labor hours allowed (SQ) 65,400
Total payroll for direct labor $804,320
Direct labor efficiency variance $18,800
The direct labor rate variance is:
$377,742 unfavorable
$367,742 unfavorable
$455,378 unfavorable
$367,742 favorable
$357,742 favorable
Q6. Prokp Co.'s records for April disclosed the following data relating to direct labor:
Actual labor cost/payroll for April $21,000
Labor rate variance $4,200 favorable
Labor efficiency variance $2,530 unfavorable
Actual direct labor hours worked (AQ) 1,100
Prokp's total standard direct labor cost for the output in April was:
$25,400
$23,568
$25,200
$21,000
$22,670
Q7. Ventura uses a just-in-time (JIT) manufacturing system for all of its materials, components, and products. The master budget of the company for June called for use of 11,900 square feet of materials, while the flexible budget for the actual output of the month had 11,000 square feet of materials at a standard cost of $10.50 per square foot. Company records show that the actual price paid for the materials used in June was $10.48 per square foot, and that the direct materials purchase-price variance for the month was $1,130.
The actual total quantity of materials purchased during the month was:
56,750
11,900
11,250
11,000
56,500
Q8. Matinna Co. maintains no inventories and has the following data pertaining to one of its direct materials in July:
Standard quantity of direct materials for the units manufactured 31,000
Direct materials purchases - actual cost $64,900
Standard price per unit of direct materials (AP) $2.00
Direct material efficiency variance - favorable $4,600
All materials purchased during the month were issued to production.
What was the company's direct materials flexible-budget (FB) variance for July?
$4,600 favorable
$2,900 unfavorable
$7,500 unfavorable
$8,000 unfavorable
$7,500 favorable
Q9. Europa Company manufactures only one product. Presented below is direct labor information for November.
Standard direct labor hours per unit of product 2.80
Number of finished units produced 5,710
Standard wage rate per direct labor hour (SP) $16.40
Total direct labor payroll for the period $311,195
Actual wage rate per direct labor hour worked (AP) $13.00
The labor rate variance in November for the output produced is:
$130,381 unfavorable
$81,389 favorable
$48,992 unfavorable
$81,389 unfavorable
$82,389 unfavorable
Q10. Lucky Company's direct labor information for the month of February is as follows:
Actual direct labor hours worked (AQ) 61,770
Standard direct labor hours allowed (SQ) 63,700
Total payroll for direct labor $802,680
Direct labor efficiency variance $18,200
The direct labor flexible-budget variance is:
$600,694 unfavorable
$201,986 unfavorable
$202,086 favorable
$210,186 favorable
$230,186 unfavorable
Q11. Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:
Materials: (4.30 kilograms × $10.50 per kilogram) $45.15
Labor: (4.30 hours × $19.40 per hour) $83.42
In-process beginning inventory none
In-process ending inventory - 100.00% complete as to labor 1,100 units
Units completed 7,690 units
Budgeted output 8,500 units
Purchases of materials in kilograms (AQ) 32,000
Total actual labor costs incurred $555,300
Direct labor hours worked (AQ) 29,800 hours
Materials purchase-price variance $3,200 unfavorable
Increase in materials inventory in July 1,590 kilograms
Beginning inventory of materials none
The sales volume variance, measured in terms of direct labor cost, for July was:
$24,192 favorable
$3,200 unfavorable
$22,820 favorable
$3,041 unfavorable
$155,142 favorable
Q12. Europa Company manufactures only one product. Presented below is direct labor information for November.
Standard direct labor hours per unit of product 3.40
Number of finished units produced 6,890
Standard wage rate per direct labor hour (SP) $20.40
Total direct labor payroll for the period $381,778
Actual wage rate per direct labor hour worked (AP) $16.00
The direct labor flexible-budget variance is:
$104,989 favorable
$104,989 unfavorable
$96,112 favorable
$104,989 unfavorable
$8,877 unfavorable
Q13. In September, Larson Inc. sold 38,000 units of its only product for $224,000 and incurred a total cost of $211,000, of which $23,200 is fixed costs. The flexible budget for September showed total sales of $280,000. Among variances of the period were: total variable cost flexible-budget variance, $7,500U; total flexible-budget variance, $58,500U; and, sales volume variance, in terms of contribution margin, $25,600U.
The total amount of variable costs in the flexible budget for September was:
$181,900
$183,500
$180,300
$182,700
$181,100
Q14. Sheldon Company manufactures only one product and uses a standard cost system. During the past month, the manufacturing operations had the following variances: Direct labor rate variance = $29,000 Favorable. Direct labor efficiency variance = $48,000 Unfavorable. Sheldon allows 4.70 standard direct labor hours per unit produced, and its standard direct labor hourly rate is $47. During the month, the company used 24.00% more direct labor hours than the standard allowed.
What was the number of units produced for the month?
1,205
1,105
1,005
1,305
905
Q15. Pokeman Bunch Inc., manufactures PokeMonster figures and has the following data from its operation for the year just completed.
Flexible Master
Actual A Budget B Budget
Units 1,390 1,120
Sales (dollars) $85,200 C $16,600 F
Variable cost E $54,000
Contribution margin $1,380 U D
Fixed cost F $4,600
Operating income $7,010
The amount C is:
$18,441
$10,051
$68,139
$45,523
$85,459
Q16. Norio Manufacturing uses powdered plastics (PPS) to manufacture a high-pressure board used in digital equipment, Flex 10. Information concerning its operation in June is as follows:
Budgeted units of Flex 10 for June 3,900
Budgeted usage of FPS 36,100 pounds
Number of units of Flex 10 manufactured 3,200
PFS purchased 34,860 pounds
PFS used 31,800 pounds
Total actual cost of FPS used $179,558
Direct materials usage variance - unfavorable $17,140
The direct materials purchase-price variance is:
$17,140 favorable
$77,311 unfavorable
$87,311 favorable
$77,311 favorable
$17,140 unfavorable
Q17. Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:
Materials: (3.40 kilograms × $8.60 per kilogram) $29.24
Labor: (3.50 hours × $15.30 per hour) $53.55
All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July:
In-process beginning inventory none
In-process ending inventory - 80.00% complete as to labor 800 units
Units completed 6,110 units
Budgeted output 7,000 units
Purchases of materials in kilograms (AQ) 25,000
Total actual labor costs incurred $443,500
Direct labor hours worked (AQ) 23,800 hours
Materials purchase-price variance $2,600 unfavorable
Increase in materials inventory in July 1,280 kilograms
Beginning inventory of materials none
The actual total cost of direct materials used in production during July was:
$364,140
$443,500
$202,048
$206,459
$203,992
Q18. In September, Larson Inc. sold 42,000 units of its only product for $255,000 and incurred a total cost of $236,300, of which $26,100 is fixed costs. The flexible budget for September showed total sales of $310,000. Among variances of the period were: total variable cost flexible-budget variance, $8,400U; total flexible-budget variance, $66,400U; and, sales volume variance, in terms of contribution margin, $28,300U.
The actual amount of operating income earned in September was:
$18,700
$19,500
$20,300
$21,100
$21,900
Q19. Roncy Manufacturing uses enhanced powder plastics (EPP) to manufacture high-pressure boards, Dura-Plastic. Information concerning its operation in June was as follows:
Master budget units of Dura-Plastic to manufacture 9,500
Units of Dura-Plastic actually manufactured 10,700
Budgeted amount of EPP to purchase 84,000 oz
EPP material actually purchased 90,200 oz
EPP material actually used in production 85,200 oz
Standard cost of EPP actually used in production $568,060
Standard quantity of EPP per unit of Dura-Plastic 8.9 oz
Cost of EPP purchased $690,468
The direct materials usage (efficiency) variance for June was:
$67,874 favorable
$89,071 unfavorable
$90,071 unfavorable
$66,874 favorable
$22,197 favorable
Q20. Joe Malay received the following report on the Division's operation for the month of August: Direct labor rate variance = $23,500 unfavorable. Direct labor efficiency variance = $66,000 (?) The standard calls for 2.80 direct labor hours per unit of output at $26.90 per labor hour. The standard direct labor hours for the units manufactured is 19.00% more than the total direct labor hours actually worked in August.
What was the total standard cost applied to production?
$293,526
$413,368
$370,868
$347,368
$42,500
Q21. Norio Manufacturing uses powdered plastics (PPS) to manufacture a high-pressure board used in digital equipment, Flex 10. Information concerning its operation in June is as follows:
Budgeted units of Flex 10 for June 5,100
Budgeted usage of FPS 46,500 pounds
Number of units of Flex 10 manufactured 4,100
PFS purchased 43,910 pounds
PFS used 39,500 pounds
Total actual cost of FPS used $223,700
Direct materials usage variance - unfavorable $21,880
The actual purchase price per pound of PPS used is:
$10.33
$5.66
$8.50
$11.33
$6.66
Q22. Sheldon Company manufactures only one product and uses a standard cost system. During the past month, the manufacturing operations had the following variances: Direct labor rate variance = $30,000 Favorable. Direct labor efficiency variance = $49,000 Unfavorable. Sheldon allows 4.90 standard direct labor hours per unit produced, and its standard direct labor hourly rate is $49. During the month, the company used 24.00% more direct labor hours than the standard allowed.
What was the actual hourly rate for direct labor?
$45.19
$43.19
$49.00
$47.19
$51.00
Q22. In September, Larson Inc. sold 45,000 units of its only product for $269,000 and incurred a total cost of $252,900, of which $28,600 is fixed costs. The flexible budget for September showed total sales of $340,000. Among variances of the period were: total variable cost flexible-budget variance, $9,100U; total flexible-budget variance, $72,500U; and, sales volume variance, in terms of contribution margin, $30,000U.
The sales volume variance, in terms of operating income, is:
$40,000 unfavorable
$20,000 unfavorable
$25,000 unfavorable
$30,000 unfavorable
$35,000 unfavorable
Q23. Precilla Company uses a standard costing system that allows 2.20 pounds of direct materials for one finished unit. During July, the company purchased 45,000 pounds of direct materials for $237,000 and manufactured 13,500 finished units. The standard direct materials cost allowed for the units manufactured is $135,000. The performance report shows that Pricilla has an unfavorable direct materials usage variance of $5,600. Also, the company records any price variance for materials at time of purchase.
The direct materials purchase-price variance in July is:
$32,955 unfavorable
$5,600 unfavorable
$33,455 unfavorable
$32,455 unfavorable
$6,600 unfavorable
Q24. Ventura uses a just-in-time (JIT) manufacturing system for all of its materials, components, and products. The master budget of the company for June called for use of 14,600 square feet of materials, while the flexible budget for the actual output of the month had 13,000 square feet of materials at a standard cost of $12.60 per square foot. Company records show that the actual price paid for the materials used in June was $12.57 per square foot, and that the direct materials purchase-price variance for the month was $1,380.
The materials flexible budegt variance for June was:
$414,920 unfavorable
$416,300 unfavorable
$415,800 unfavorable
$414,420 unfavorable
$1,380 favorable