Chapter 10 Practice quiz
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours-Standard Price or Rate-Standard Cost Per Unit Direct materials 6.8ounces-$4.00per ounce-$27.20 Direct labor 0.5hours-$12.00per hour-$6.00 Variable overhead 0.5hours-$4.00per hour-$2.00 The company reported the following results concerning this product in June. Originally budgeted output 2,200units Actual output 2,700units Raw materials used in production 20,000ounces Purchases of raw materials 18,000ounces Actual direct labor-hours 530hours Actual cost of raw materials purchases$45,000 Actual direct labor cost$12,200 Actual variable overhead cost$3,350 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for June is: Multiple Choice $1,242 U $1,242 F $1,230 F $1,230 U
$1,230 U
The following labor standards have been established for a particular product: Standard labor-hours per unit of output 7.7hoursStandard labor rate$15.35per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 9,800hoursActual total labor cost$148,960 Actual output 1,100units What is the labor rate variance for the month? Multiple Choice $165 F $1,470 F $1,470 U $165 U
$1,470 F
Chhom Corporation makes a product whose direct labor standards are 0.8 hours per unit and $31 per hour. In November the company produced 7,500 units using 5,500 direct labor-hours. The actual direct labor cost was $115,500. The labor efficiency variance for November is: Multiple Choice $70,500. F $15,500. F $15,500. U $70,500. U
$15,500. F
The Fime Corporation uses a standard costing system. The following data have been assembled for December: Actual direct labor-hours worked 5,600hours Standard direct labor rate$10per hour Labor efficiency variance$1,500Unfavorable The standard hours allowed for December's production is: Multiple Choice 5,300 hours 5,450 hours 5,600 hours 5,750 hours
5,450 hours
Krizun Industries makes heavy construction equipment. The standard for a particular crane calls for 30 direct labor-hours at $16 per direct labor-hour. During a recent period 1,800 cranes were made. The labor efficiency variance was $6,000 Unfavorable. How many actual direct labor-hours were worked? Multiple Choice 60,000 direct labor-hours 54,000 direct labor-hours 54,375 direct labor-hours 52,200 direct labor-hours
54,375 direct labor-hours
Doogan Corporation makes a product with the following standard costs: Standard Quantity or Hours-Standard Price or Rate Direct materials 2.0grams$7.00per gram Direct labor 1.4hours$10.00per hour Variable overhead 1.4hours$4.00per hour The company produced 4,800 units in January using 10,320 grams of direct material and 2,300 direct labor-hours. During the month, the company purchased 10,890 grams of the direct material at $7.20 per gram. The actual direct labor rate was $10.75 per hour and the actual variable overhead rate was $3.90 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for January is: Multiple Choice $5,040 F $5,184 U $5,184 F $5,040 U
$5,040 U
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours-Standard Price or Rate-Standard Cost Per Unit Direct materials 5.8ounces-$3.00per ounce-$17.40 Direct labor 0.5hours-$12.00per hour-$6.00 Variable overhead 0.5hours-$5.00per hour-$2.50 The company reported the following results concerning this product in June. Originally budgeted output 3,800units Actual output 3,400units Raw materials used in production 20,800ounces Purchases of raw materials 21,900ounces Actual direct labor-hours 520hours Actual cost of raw materials purchases$42,500 Actual direct labor cost$13,800 Actual variable overhead cost$3,900 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for June is: Multiple Choice $1,909 F $7,560 F $1,909 U $7,560 U
$7,560 U
Majer Corporation makes a product with the following standard costs: Standard Quantityor Hours-Standard Price orRate-Standard Cost Per Unit Direct materials 2.0ounces$4.00per ounce$8.00 Direct labor 0.8hours$10.00per hour$8.00 Variable overhead 0.8hours$2.50per hour$2.00 The company reported the following results concerning this product in February. Originally budgeted output 4,800units Actual output 4,600units Raw materials used in production 7,200ounces Actual direct labor-hours 3,880hours Purchases of raw materials 8,800ounces Actual price of raw materials$3.90per ounce Actual direct labor rate$12.00per hour Actual variable overhead rate$3.50per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for February is: Multiple Choice $8,720 U $8,720 F $880 F $880 U
$880 F
Piper Corporation's standards call for 4,725 direct labor-hours to produce 1,350 units of product. During October the company worked 1,000 direct labor-hours and produced 1,000 units. The standard hours allowed for October would be: Multiple Choice 4,725 hours 1,250 hours 3,500 hours 3,725 hours
3,500 hours
In general, the production manager is responsible for the materials price variance t/f
false
Waste on the production line will result in an unfavorable materials price variance. t/f
false
If the actual hourly rate is greater than the standard hourly rate, the labor rate variance is labeled unfavorable (U) t/f
true
When the materials price variance is recorded at the time of purchase, raw materials are recorded as inventory at standard cost. t/f
true
