Question Details

A company uses the following standard costs to produce a single unit 



1. The standard materials cost to produce 1 unit of Product M is 6 pounds of material at a standard price of
$50 per pound. In manufacturing 8,000 units, 47,000 pounds of material were used at a cost of $51 per
pound. What is the total direct materials cost variance?
A. $48,000 unfavorable.
B. $51,000 favorable.
C. $51,000 unfavorable.
D. $3,000 favorable.
E. $3,000 unfavorable.
2. The following information describes a company's usage of direct labor in a recent period. The direct labor

Actual hours used…………………………	45,000
Actual rate per hour……………………….	$15
Standard rate per hour………………………	$14
Standard hours for units produced…………..	47,000

efficiency variance is:
A. $28,000 unfavorable.
B. $28,000 favorable.
C. $45,000 unfavorable.
D. $45,000 favorable.
E. $17,000 unfavorable.
3. The following information describes a company's usage of direct labor in a recent period. The direct labor

Actual hours used…………………………	45,000
Actual rate per hour……………………….	$15
Standard rate per hour………………………	$14
Standard hours for units produced…………..	47,000

rate variance is:
A. $28,000 favorable.
B. $28,000 unfavorable.
C. $45,000 unfavorable.
D. $45,000 favorable.
E. $17,000 unfavorable.
4. A company uses the following standard costs to produce a single unit of

Direct materials	6 pounds at $0.90 per pound = $5.40
Direct labor	0.5 hour at $ 12.00 per hour = $ 6.00
Manufacturing overhead	0.5 hour at $ 4.80 per hour = $ 2.40

output.
During the latest month, the company purchased and used 58,000 pounds of direct materials at a price of
$1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $56,350 based
on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15,000 and
fixed manufacturing overhead incurred was $10,400. Based on this information, the direct materials price
variance for the month was:
A. $6,000 unfavorable
B. $1,800 favorable
C. $1,000 favorable
D. $5,800 unfavorable
E. $1,800 unfavorable
5. A company uses the following standard costs to produce a single unit of

Direct materials	6 pounds at $0.90 per pound = $5.40
Direct labor	0.5 hour at $ 12.00 per hour = $ 6.00
Manufacturing overhead	0.5 hour at $ 4.80 per hour = $ 2.40

output.
During the latest month, the company purchased and used 58,000 pounds of direct materials at a price of
$1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $56,350 based
on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15,000
and fixed manufacturing overhead incurred was $10,400. Based on this information, the direct materials
quantity variance for the month was:
A. $1,800 favorable
B. $5,800 unfavorable
C. $5,800 favorable
D. $1,800 unfavorable
E. $1,000 favorable




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