Question Details

Cabot Company collected the following data regarding production 



1. Bok Company's output for the current period was assigned a $400,000 standard direct labor cost. The
direct labor variances included a $10,000 unfavorable direct labor rate variance and a $4,000 favorable
direct labor efficiency variance. What is the actual total direct labor cost for the current period?
A. $414,000.
B. $386,000.
C. $394,000.
D. $406,000.
E. $410,000.
2. Brewer Company specializes in selling used cars. During the month, the dealership sold 22 cars at
an average price of $15,000 each. The budget for the month was to sell 20 cars at an average price of
$16,000. Compute the dealership's sales price variance for the month.
A. $22,000 unfavorable.
B. $10,000 favorable.
C. $22,000 favorable.
D. $32,000 unfavorable.
E. $32,000 favorable.
3. Brewer Company specializes in selling used cars. During the month, the dealership sold 22 cars at
an average price of $15,000 each. The budget for the month was to sell 20 cars at an average price of
$16,000. Compute the dealership's sales volume variance for the month.
A. $22,000 unfavorable.
B. $10,000 favorable.
C. $22,000 favorable.
D. $32,000 unfavorable.
E. $32,000 favorable.
4. Cabot Company collected the following data regarding production of one of its products. Compute the

Direct material standard (6 lbs. @ $2/lb.)	$12 per finished unit 
Actual direct materials used	243,000 lbs.
Actual finished units produced	40,000 units
Actual cost of direct materials used	$483,570


direct materials cost variance.
A. $6,000 favorable.
B. $3,570 unfavorable.
C. $2,430 favorable.
D. $6,000 unfavorable.
E. $3,570 favorable.
5.Cabot Company collected the following data regarding production of one of its products. Compute the

Direct material standard (6 lbs. @ $2/lb.)	$12 per finished unit 
Actual direct materials used	243,000 lbs.
Actual finished units produced	40,000 units
Actual cost of direct materials used	$483,570

direct materials price variance.
A. $2,430 unfavorable.
B. $3,570 unfavorable.
C. $2,430 favorable.
D. $6,000 unfavorable.
E. $3,570 favorable.




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