Deck 10: Standard Costs and Overhead Analysis

Question 1

A favourable materials price variance coupled with an unfavourable materials quantity variance would MOST likely result from which of the following?

A) Problems with processing machines.
B) Purchase of low quality materials.
C) Problems with labour efficiency.
D) Changes in the product mix.

Answer 1

B

Question 2

Dahl Company,a clothing manufacturer,uses a standard costing system.Each unit of a finished product contains 2 metres of cloth.However,there is unavoidable waste of 20%,calculated on input quantities,when the cloth is cut for assembly.The cost of the cloth is $3 per metre.What is the standard direct material cost for cloth per unit of finished product?

A) $4.80.
B) $6.00.
C) $7.00.
D) $7.50.

Answer 2

D

Question 3

Tower Company planned to produce 3,000 units of its single product,Titactium,during November.The standards for one unit of Titactium specify six kilograms of materials at $0.30 per kilogram.Actual production in November was 3,100 units of Titactium.There was a favourable materials price variance of $380 and an unfavourable materials quantity variance of $120.Based on these variances,what could one assume?

A) That more materials were purchased than were used.
B) That more materials were used than were purchased.
C) That the actual cost per kilogram for materials was less than the standard cost per kilogram.
D) That the actual usage of materials was less than the standard allowed.

Answer 3

C

Question 4

Which department is usually held responsible for an unfavourable materials quantity variance?

A) Marketing.
B) Purchasing.
C) Engineering.
D) Production.

Question 5

Drake Company purchased materials on account.The entry to record the purchase of materials having a standard cost of $1.50 per kilogram from a supplier at $1.60 per kilogram would include which of the following?

A) A credit to Raw Materials Inventory.
B) A debit to Work in Process.
C) A credit to Materials Price Variance.
D) A debit to Materials Price Variance.

Question 6

Cox Company's direct material costs for the month of January were as follows;
$\begin{array}{|l|r|}\hline \text { Actual quantity purchased } & \$ 18,000 \text { kilograms } \\\hline \text { Actual unit purchase price } & \$ 3.60 \text { per kilogram } \\\hline \text { Materials price variance- } & \\\hline \text { Unfavourable (based on purchases) } & \$ 3,600 \\\hline \text { Standard quantity allowed } & \\\hline \text { For actual production } &16,000 \text { kilograms } \\\hline \text { Actual quantity used } & 15,000 \text { kilograms } \\\hline\end{array}$
What was the favourable direct materials quantity variance for January?

A) $3,360.
B) $3,375.
C) $3,400.
D) $3,800.

Question 7

What does a favourable labour rate variance indicate?

A) Actual hours exceed standard hours.
B) Standard hours exceed actual hours.
C) The actual rate exceeds the standard rate.
D) The standard rate exceeds the actual rate.

Question 8

The Porter Company has a standard cost system.In July,the company purchased and used 22,500 kilograms of direct material at an actual cost of $53,000,the materials quantity variance was $1,875 unfavourable,and the standard quantity of materials allowed for July production was 21,750 kilograms.What was the materials price variance for July?

A) $2,725 favourable.
B) $2,725 unfavourable.
C) $3,250 favourable.
D) $3,250 unfavourable.

Question 9

To measure controllable production inefficiencies,which of the following is the best basis for a company to use in establishing the standard hours allowed for the output of one unit of product?

A) Average historical performance for the last several years.
B) Engineering estimates based on ideal performance.
C) Engineering estimates based on attainable performance.
D) The hours per unit that would be required for the present workforce to satisfy expected demand over the long run.

Question 10

What do the terms "standard quantity allowed" or "standard hours allowed" mean?

A) The actual output in units multiplied by the standard output allowed.
B) The actual input in units multiplied by the standard output allowed.
C) The actual output in units multiplied by the standard input allowed.
D) The standard output in units multiplied by the standard input allowed.

Question 11

A labour efficiency variance resulting from the use of poor quality materials should be charged to which/whom?

A) The production manager.
B) The purchasing agent.
C) Manufacturing overhead.
D) The engineering department.

Question 12

If a company follows a practice of isolating variances at the earliest point in time,what would be the appropriate time to isolate and recognize a direct material price variance?

A) When material is issued.
B) When material is purchased.
C) When material is used in production.
D) When production is completed.

Question 13

What does an unfavourable labour efficiency variance indicate?

A) The actual labour rate was higher than the standard labour rate.
B) The labour rate variance must also be unfavourable.
C) Actual labour hours worked exceeded standard labour hours for the production level achieved.
D) Overtime labour was used during the period.

Question 14

What does a credit balance in a direct labour efficiency variance account indicate?

A) The average wage rate paid to direct labour employees was less than the standard rate.
B) The standard hours allowed for the units produced were greater than actual direct labour hours used.
C) The actual total direct labour costs incurred were less than standard direct labour costs allowed for the units produced.
D) The number of units produced was less than the number of units budgeted for the period.

Question 15

Which of the following statements concerning practical standards is NOT correct?

A) Practical standards can be used for product costing and cash budgeting.
B) Practical standards can be attained by the average worker.
C) When practical standards are used; there is no reason to adjust standards if an old machine is replaced by a newer, faster machine.
D) Under practical standards, large variances are less likely than under ideal standards.

Question 16

Which of the following entries would correctly record the charging of direct labour costs to Work in Process given an unfavourable labour efficiency variance and a favourable labour rate variance?

A) A debit to Work in Process, and credits to Labour Efficiency Variance, Labour Rate Variance, and Wages Payable.
B) A debit to Work in Process and an equal credit to Wages Payable.
C) Debits to Work in Process and Labour Efficiency Variance, and credits to Labour Rate Variance and Wages Payable.
D) Debits to Work in Process and Labour Rate Variance, and credits to Labour Efficiency Variance and Wages Payable.

Question 17

Which of the following is the most probable reason a company would experience an unfavourable labour rate variance and a favourable labour efficiency variance?

A) The mix of workers assigned to the particular job was heavily weighted towards the use of higher paid, experienced individuals.
B) The mix of workers assigned to the particular job was heavily weighted towards the use of new, relatively low-paid, unskilled workers.
C) Because of the production schedule, workers from other production areas were assigned to assist this particular process.
D) Defective materials caused more labour to be used in order to produce a standard unit.

Question 18

Under a standard cost system,who is usually held responsible for the materials price variances?

A) The production manager.
B) The sales manager.
C) The purchasing manager.
D) The engineering manager.

Question 19

If the actual labour hours worked exceed the standard labour hours allowed,what type of variance will occur?

A) Favourable labour efficiency variance.
B) Favourable labour rate variance.
C) Unfavourable labour efficiency variance.
D) Unfavourable labour rate variance.

Question 20

Which of the following refers to standards that allow for no machine breakdowns or other work interruptions and that require peak efficiency at all times?

A) Normal standards.
B) Practical standards.
C) Ideal standards.
D) Budgeted standards.

Question 21

Borden Enterprises uses standard costing.For the month of April,the company reported the following data:
$\begin{array}{|l|r|}\hline \text { Standard direct labour rate } & \$ 10 \text { per hour } \\\hline \text { Standard hours allowed for actual production } & 8,000 \\\hline \text { Actual direct labour rate } & \$ 9.50 \text { per hour } \\\hline \text { Labour efficiency variance } & \$ 4,800 \text { favourable } \\\hline\end{array}$
What was the labour rate variance for April?

A) $2,850 favourable.
B) $2,850 unfavourable.
C) $3,760 favourable.
D) $3,760 unfavourable.

Question 22

The Fletcher Company uses standard costing.The following data are available for October:
$\begin{array}{|l|r|}\hline \text { Actual quantity of direct materials used } & 23,500 \text { kilograms } \\\hline \text { Standard price of direct materials } & \$ 2 \text { per kilogram } \\\hline \text { Materials quantity variance } & \$ 1,000 \text { favourable } \\\hline\end{array}$
What was the standard quantity of material allowed for October production?

A) 23,000 kilograms.
B) 24,000 kilograms.
C) 24,500 kilograms.
D) 25,000 kilograms.

Question 23

The following standards for variable manufacturing overhead have been established for a company that makes only one product:
$\begin{array}{|l|r|}\hline \text { Standard hours per unit of output } & 5.6 \text { hours } \\\hline \text { Standard variable overhead rate } & \$ 12.00 \text { per hour } \\\hline\end{array}$
The following data pertain to operations for the last month:
$\begin{array}{|l|r|}\hline \text { Actual hours } & 2,600 \text { hours } \\\hline \text { Actual total variable overhead cost } & \$ 31,330 \\\hline \text { Actual output } & 400 \text { units } \\\hline\end{array}$
What was the variable overhead spending variance for the month?

A) $130 favourable.
B) $130 unfavourable.
C) $4,338 unfavourable.
D) $4,450 unfavourable.

Question 24

Last month,75,000 kilograms of direct materials were purchased,and 71,000 kilograms were used.If the actual purchase price per kilogram was $0.50 more than the standard purchase price per kilogram,what was the materials price variance?

A) $2,000 favourable.
B) $35,500 unfavourable.
C) $37,500 favourable.
D) $37,500 unfavourable.

Question 25

The following labour standards have been established for a particular product:
$\begin{array}{|l|r|}\hline \text { Standard labour hours per unit of output } & 1.7 \text { hours } \\\hline \text { Standard labour rate } & \$ 14.05 \text { per hour } \\\hline\end{array}$
The following data pertain to operations concerning the product for the last month:
$\begin{array}{|l|r|}\hline \text { Actual hours worked } & 3,700 \text { hours } \\\hline \text { Actual total labour cost } & \$ 50,690 \\\hline \text { Actual output } & 2,300 \text { units } \\\hline\end{array}$
What was the labour rate variance for the month?

A) $1,295 favourable.
B) $1,295 unfavourable.
C) $2,950 favourable.
D) $2950 unfavourable.

Question 26

Information on Fleming Company's direct material costs follows:
$\begin{array}{|l|r|}\hline \text { Actual amount of direct materials purchased and used } & 20,000 \text { kilograms } \\\hline \text { Actual direct material costs } & \$ 40,000 \\\hline \text { Standard price of direct materials } & \$ 2.10 \text { per kilogram } \\\hline \text { Direct materials quantity variance-favourable } & \$ 3,000 \\\hline\end{array}$
What was the company's direct material price variance?

A) $1,000 favourable.
B) $1,000 unfavourable.
C) $2,000 favourable.
D) $2,000 unfavourable.

Question 27

For the month of April,Thorp Co.'s records disclosed the following data relating to direct labour:
$\begin{array}{|l|r|}\hline \text { Actual cost } & \$ 10,000 \\\hline \text { Rate variance } & \$ 1,000 \text { favourable } \\\hline \text { Efficiency variance } & \$ 1,500 \text { unfavourable } \\\hline\end{array}$
For the month of April,actual direct labour hours amounted to 2,000.In April,what was Thorp's standard direct labour rate per hour?

A) $4.50.
B) $4.75.
C) $5.00.
D) $5.50.

Question 28

The following labour standards have been established for a particular product:
$\begin{array}{|l|r|}\hline \text { Standard labour hours per unit of output } & 8.3 \text { hours } \\\hline \text { Standard labour rate } & \$ 12.10 \text { per hour } \\\hline\end{array}$
The following data pertain to operations concerning the product for the last month:
$\begin{array}{|l|r|}\hline \text { Actual hours worked } & 6,100 \text { hours } \\\hline \text { Actual total labour cost } & \$ 71,370 \\\hline \text { Actual output } & 900 \text { units } \\\hline\end{array}$
What was the labour efficiency variance for the month?

A) $16,029 favourable.
B) $16,577 favourable.
C) $19,017 favourable.
D) $19,017 unfavourable.

Question 29

The standards for direct labour for a product are 2.5 hours at $8 per hour.Last month,9,000 units of the product were made,and the labour efficiency variance was $8,000 favourable.What was the actual number of hours worked during the past period?

A) 20,500 hours.
B) 21,500 hours.
C) 22,500 hours.
D) 23,500 hours.

Question 30

The following materials standards have been established for a particular product:
$$\begin{array} { | l | r | } \hline \text { Standard quantity per unit of output } & 1.7 \text { metres } \\\hline \text { Standard price } & \$ 19.80 \text { per metre } \\\hline\end{array}$$
The following data pertain to operations concerning the product for the last month:
$$\begin{array} { | l | r | } \hline \text { Actual materials purchased } & 5,800 \text { metres } \\\hline \text { Actual cost of materials purchased } & \$ 113,680 \\\hline \text { Actual materials used in production } & 5,100 \text { metres } \\\hline \text { Actual output } & 3,200 \text { wits } \\\hline\end{array}$$
What was the materials quantity variance for the month?

A) $6,664 favourable.
B) $6,732 favourable.
C) $13,720 unfavourable.
D) $13,860 unfavourable.

Question 31

Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product:
$\begin{array} { | l | r | r | r | } \hline & \text { Standard Quantity } & \text { Standard Price } & \text { Standard Cost } \\\hline \text { Direct Materials } & 6 \text { kilograms } & \$ 3.50 / \text { kilogram } & \$ 21.00 \\\hline \text { Direct Labour } & 1.3 \text { hours } & \$ 11.00 / \text { hour } & \$ 14.30 \\\hline & & & \$ 35.30 \\\hline\end{array}$ During March, Bryan purchased 165,000 kilograms of direct materials at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000 units of product during March, using 151,000 kilograms of direct materials and 32,000 direct labour hours.




-What was the price variance for the direct materials acquired by the company during March?

A) $7,550 favourable.
B) $7,550 unfavourable.
C) $8,250 favourable.
D) $8,250 unfavourable.

Question 32

Yola Company manufactures a product with standards for direct labour of 4 direct labour-hours per unit at a cost of $12.00 per direct labour-hour.During June,1,000 units were produced using 4,100 hours at $12.20 per hour.What was the direct labour efficiency variance?

A) $1,200 favourable.
B) $1,200 unfavourable.
C) $2,020 favourable.
D) $2,020 unfavourable.

Question 33

The Reedy Company uses a standard costing system.The following data are available for November:
$\begin{array}{|l|r|}\hline \text { Actual direct labour hours worked } & 5,800 \\\hline \text { Standard direct labour rate } & \$ 9 \text { per hour } \\\hline \text { Labour rate variance } & \$ 1,160 \text { favourable } \\\hline\end{array}$
What was the actual direct labour rate for November?

A) $8.80.
B) $8.90.
C) $9.00
D) $9.20.

Question 34

The following standards for variable manufacturing overhead have been established for a company that makes only one product:
$\begin{array}{|l|r|}\hline \text { Standard hours per unit of output } & 7.8 \text { hours } \\\hline \text { Standard variable overhead rate } & \$ 12.55 \text { per hour } \\\hline\end{array}$
The following data pertain to operations for the last month:
$\begin{array}{|l|r|}\hline \text { Actual hours } & 2,900 \text { hours } \\\hline \text { Actual total variable overhead cost } & \$ 36,975 \\\hline \text { Actual output } & 200 \text { units } \\\hline\end{array}$
What was the variable overhead efficiency variance for the month?

A) $0.
B) $16,817 unfavourable.
C) $580 unfavourable.
D) $17,397 unfavourable.

Question 35

In a certain standard costing system,the following results occurred last period: labour rate variance,$1,000 unfavourable; labour efficiency variance,$2,800 favourable; and the actual labour rate was $0.20 more per hour than the standard labour rate.What number of actual direct labour hours was used last period?

A) 4,800 hours.
B) 5,000 hours.
C) 5,400 hours.
D) 9,000 hours.

Question 36

The following materials standards have been established for a particular product:
$\begin{array}{|l|r|}\hline \text { Standard quantity per unit of output } & 8.3 \text { grams } \\\hline \text { Standard price } & \$ 19.15 \text { per gram } \\\hline\end{array}$
The following data pertain to operations concerning the product for the last month:
$\begin{array}{|l|r|}\hline \text { Actual materials purchased } & 7,500 \text { grams } \\\hline \text { Actual cost of materials purchased } & \$ 141,375 \\\hline \text { Actual materials used in production } & 7,100 \text { grams } \\\hline \text { Actual output } & 700 \text { units } \\\hline\end{array}$
What was the materials price variance for the month?

A) $2,250 favourable.
B) $7,540 unfavourable.
C) $7,660 unfavourable.
D) $24,317 unfavourable.

Question 37

Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product:
$\begin{array} { | l | r | r | r | } \hline & \text { Standard Quantity } & \text { Standard Price } & \text { Standard Cost } \\\hline \text { Direct Materials } & 6 \text { kilograms } & \$ 3.50 / \text { kilogram } & \$ 21.00 \\\hline \text { Direct Labour } & 1.3 \text { hours } & \$ 11.00 / \text { hour } & \$ 14.30 \\\hline & & & \$ 35.30 \\\hline\end{array}$ During March, Bryan purchased 165,000 kilograms of direct materials at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000 units of product during March, using 151,000 kilograms of direct materials and 32,000 direct labour hours.




-What was the direct materials quantity variance for March?

A) $3,500 favourable.
B) $3,500 unfavourable.
C) $52,500 favourable.
D) $52,500 unfavourable.

Question 38

During March,Younger Company's direct material costs for product T were as follows:
$\begin{array}{|l|r|}\hline \text { Actual unit purchase price } & \$ 6.50 \text { per metre } \\\hline \text { Standard quantity allowed for actual Production } & 2,100 \text { metres } \\\hline \text { Quantity purchased and used for actual Production } & 2,300 \text { metres } \\\hline \text { Standard unit price } & \$ 6.25 \text { per metre } \\\hline\end{array}$
What was Younger's material quantity variance for March?

A) $1,250 unfavourable.
B) $1,250 favourable.
C) $1,300 unfavourable.
D) $1,300 favourable.

Question 39

Information on Kennedy Company's direct material costs follows:
$\begin{array}{|l|r|}\hline \text { Standard price per kilogram of raw materials } & \$ 3.60 \\\hline \text { Actual quantity of raw materials purchased } & 1,600 \text { kilograms } \\\hline \text { Standard quantity allowed for actual production } & 1,450 \text { kilograms } \\\hline \text { Materials purchase price variance-favourable } & \$ 240 \\\hline\end{array}$
What was the actual purchase price per unit,rounded to the nearest cent?

A) $3.06.
B) $3.11.
C) $3.45.
D) $3.75.

Question 40

Lab Corp.uses a standard cost system.Direct labour information for Product CER for the month of October follows:
$\begin{array}{|l|r|}\hline \text { Standard direct labour rate } & \$ 6.00 \text { per hour } \\\hline \text { Actual direct labour rate paid } & \$ 6.10 \text { per hour } \\\hline \text { Standard hours allowed for actual production } & 1,500 \text { hours } \\\hline \text { Labour efficiency variance-unfavourable } & \$ 600 \\\hline\end{array}$
What were the actual hours worked?

A) 1,400 hours.
B) 1,402 hours.
C) 1,598 hours.
D) 1,600 hours.

Question 41

The Dexon Company makes and sells a single product, called a Mip, and employs a standard costing system. The following standards have been established for one unit of Mip: $\begin{array}{|l|r|r|}\hline & \text { Standard Quantity or Hours } & \text { Standard Cost per Mip } \\\hline \text { Direct Materials } & 6 \text { board metre } & \$ 9.00 \\\hline \text { Direct Labour } & 0.8 \text { hours } & \$ 9.60 \\\hline\end{array}$
There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board metres at the total cost of $\$ 24,000$ .
Used 12,000 board metres to produce 2,100 Mips.
Used 1,700 hours of direct labour time at a total cost of $\$ 20,060$ .

- To record the purchase of direct materials,the general ledger would include what entry to the Materials Price Variance account?

A) $1,500 credit.
B) $1,500 debit.
C) $6,000 credit.
D) $6,000 debit.

Question 42

The Albright Company uses standard costing and has established the following standards $f$ its single product:
$\begin{array}{|l|r|}\hline \text { Direct Materials } & 2 \text { litres at \$3 per litre } \\\hline \text { Direct Labour } & 0.5 \text { hours at \$8 per hour } \\\hline \text { Variable Manufacturing Overhead } & 0.5 \text { hours at \$2 per hour } \\\hline\end{array}$
During November, the company made 4,000 units and incurred the following costs:
$\begin{array}{|l|r|}\hline \text { Direct Materials Purchased } & 8,100 \text { litres at } \$ 3.10 \text { per litre } \\\hline \text { Direct Materials Used } & 7,600 \text { litres } \\\hline \text { Direct Labour Used } & 2,200 \text { hours at } \$ 8.25 \text { per hour } \\\hline \text { Actual Variable Manufacturing Overhead } & \$ 4,175 \\\hline\end{array}$
The company applies variable manufacturing overhead to products on the basis of direct labour hours.

-What was the total variable overhead variance for November?

A) $175 unfavourable.
B) $225 favourable.
C) $225 unfavourable.
D) $400 unfavourable.

Question 43

Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product:
$\begin{array} { | l | r | r | r | } \hline & \text { Standard Quantity } & \text { Standard Price } & \text { Standard Cost } \\\hline \text { Direct Materials } & 6 \text { kilograms } & \$ 3.50 / \text { kilogram } & \$ 21.00 \\\hline \text { Direct Labour } & 1.3 \text { hours } & \$ 11.00 / \text { hour } & \$ 14.30 \\\hline & & & \$ 35.30 \\\hline\end{array}$ During March, Bryan purchased 165,000 kilograms of direct materials at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000 units of product during March, using 151,000 kilograms of direct materials and 32,000 direct labour hours.




-What was the direct labour efficiency variance for March?

A) $5,500 favourable.
B) $5,500 unfavourable.
C) $5,625 favourable.
D) $5,625 unfavourable.

Question 44

Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows:
$\begin{array}{|l|r|r|}\hline & \text { Standard Quantity } & \text { Standard Cost per Bag } \\\hline \text { Direct Materials } & 20 \text { kilograms } & \$ 8.00 \\\hline \text { Direct Labour } & 0.1 \text { hours } & 1.10 \\\hline \text { Variable Manufacturing Overhead } & 0.1 \text { hours } & .40\\\hline \end{array}$
The company had no beginning inventories of any kind on January 1. Variable manufacturing overhead is applied to production on the basis of direct labour hours. The results of the company's operations during January are as follows:
$\begin{array}{|l|r|}\hline \text { Production of Fastgro: } & 4,000 \text { bags } \\\hline \text { Direct Materials Purchased } & 85,000 \text { kilograms at a cost of } \$ 32,300 \\\hline \text { Direct Labour Used } & 390 \text { hours at a cost of } \$ 4,875 \\\hline \text { Variable Manufacturing Overhead Incurred } & \$ 1,475 \\\hline \text { Inventory of Direct Materials on January } 31 & 3,000 \text { kilograms } \\\hline\end{array}$

-What was the labour rate variance for January?

A) $475 favourable.
B) $475 unfavourable.
C) $585 favourable.
D) $585 unfavourable.

Question 45

The Dexon Company makes and sells a single product, called a Mip, and employs a standard costing system. The following standards have been established for one unit of Mip: $\begin{array}{|l|r|r|}\hline & \text { Standard Quantity or Hours } & \text { Standard Cost per Mip } \\\hline \text { Direct Materials } & 6 \text { board metre } & \$ 9.00 \\\hline \text { Direct Labour } & 0.8 \text { hours } & \$ 9.60 \\\hline\end{array}$
There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board metres at the total cost of $\$ 24,000$ .
Used 12,000 board metres to produce 2,100 Mips.
Used 1,700 hours of direct labour time at a total cost of $\$ 20,060$ .

- To record the use of direct materials in production,the general ledger would include what entry to the Materials Quantity Variance account?

A) $900 debit.
B) $900 credit.
C) $3,600 debit.
D) $3,600 credit.

Question 46

The Albright Company uses standard costing and has established the following standards $f$ its single product:
$\begin{array}{|l|r|}\hline \text { Direct Materials } & 2 \text { litres at \$3 per litre } \\\hline \text { Direct Labour } & 0.5 \text { hours at \$8 per hour } \\\hline \text { Variable Manufacturing Overhead } & 0.5 \text { hours at \$2 per hour } \\\hline\end{array}$
During November, the company made 4,000 units and incurred the following costs:
$\begin{array}{|l|r|}\hline \text { Direct Materials Purchased } & 8,100 \text { litres at } \$ 3.10 \text { per litre } \\\hline \text { Direct Materials Used } & 7,600 \text { litres } \\\hline \text { Direct Labour Used } & 2,200 \text { hours at } \$ 8.25 \text { per hour } \\\hline \text { Actual Variable Manufacturing Overhead } & \$ 4,175 \\\hline\end{array}$
The company applies variable manufacturing overhead to products on the basis of direct labour hours.

-What was the labour rate variance for November?

A) $550 unfavourable.
B) $1,050 unfavourable.
C) $2,150 favourable.
D) $2,150 unfavourable.

Question 47

$\text { The Litton Company has established standards as follows: }$
$\begin{array}{|l|r|}\hline \text { Direct Material } & 3 \mathrm{kgs} @ @ 4 / \mathrm{kg} .=\$ 12 \text { per unit } \\\hline \text { Direct Labour } & 2 \mathrm{hrs} @ \$ 8 / \mathrm{hr} .=\$ 16 \text { per unit } \\\hline \text { Variable Manufacturing Overhead } & 2 \text { hrs. @ } \$ 5 / \mathrm{hr} .=\$ 10 \text { per unit } \\\hline\end{array}$
Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased.
$\begin{array}{|l|r|}\hline \text { Units Produced } & 600 \\\hline \text { Direct Material Used } & 2,000 \mathrm{kgs} . \\\hline \text { Direct Material Purcahsed (3,000 kgs.) } & \$ 11,400 \\\hline \text { Direct Labour Cost }(1,100 \text { hrs. }) & \$ 9,240 \\\hline \text { Variable Manufacturing Overhead Cost Incurred } & \$ 5,720 \\\hline\end{array}$
The company applies variable manufacturing overhead to products on the basis of direct labour hours.

-What was the variable overhead spending variance?

A) $220 favourable.
B) $220 unfavourable.
C) $240 favourable.
D) $240 unfavourable.

Question 48

$\text { The Litton Company has established standards as follows: }$
$\begin{array}{|l|r|}\hline \text { Direct Material } & 3 \mathrm{kgs} @ @ 4 / \mathrm{kg} .=\$ 12 \text { per unit } \\\hline \text { Direct Labour } & 2 \mathrm{hrs} @ \$ 8 / \mathrm{hr} .=\$ 16 \text { per unit } \\\hline \text { Variable Manufacturing Overhead } & 2 \text { hrs. @ } \$ 5 / \mathrm{hr} .=\$ 10 \text { per unit } \\\hline\end{array}$
Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased.
$\begin{array}{|l|r|}\hline \text { Units Produced } & 600 \\\hline \text { Direct Material Used } & 2,000 \mathrm{kgs} . \\\hline \text { Direct Material Purcahsed (3,000 kgs.) } & \$ 11,400 \\\hline \text { Direct Labour Cost }(1,100 \text { hrs. }) & \$ 9,240 \\\hline \text { Variable Manufacturing Overhead Cost Incurred } & \$ 5,720 \\\hline\end{array}$
The company applies variable manufacturing overhead to products on the basis of direct labour hours.

-What was the labour rate variance?

A) $480 favourable.
B) $480 unfavourable.
C) $440 favourable.
D) $440 unfavourable.

Question 49

$\text { The Litton Company has established standards as follows: }$
$\begin{array}{|l|r|}\hline \text { Direct Material } & 3 \mathrm{kgs} @ @ 4 / \mathrm{kg} .=\$ 12 \text { per unit } \\\hline \text { Direct Labour } & 2 \mathrm{hrs} @ \$ 8 / \mathrm{hr} .=\$ 16 \text { per unit } \\\hline \text { Variable Manufacturing Overhead } & 2 \text { hrs. @ } \$ 5 / \mathrm{hr} .=\$ 10 \text { per unit } \\\hline\end{array}$
Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased.
$\begin{array}{|l|r|}\hline \text { Units Produced } & 600 \\\hline \text { Direct Material Used } & 2,000 \mathrm{kgs} . \\\hline \text { Direct Material Purcahsed (3,000 kgs.) } & \$ 11,400 \\\hline \text { Direct Labour Cost }(1,100 \text { hrs. }) & \$ 9,240 \\\hline \text { Variable Manufacturing Overhead Cost Incurred } & \$ 5,720 \\\hline\end{array}$
The company applies variable manufacturing overhead to products on the basis of direct labour hours.

-What was the materials price variance?

A) $400 favourable.
B) $400 unfavourable.
C) $600 favourable.
D) $600 unfavourable.

Question 50

$\text { The Litton Company has established standards as follows: }$
$\begin{array}{|l|r|}\hline \text { Direct Material } & 3 \mathrm{kgs} @ @ 4 / \mathrm{kg} .=\$ 12 \text { per unit } \\\hline \text { Direct Labour } & 2 \mathrm{hrs} @ \$ 8 / \mathrm{hr} .=\$ 16 \text { per unit } \\\hline \text { Variable Manufacturing Overhead } & 2 \text { hrs. @ } \$ 5 / \mathrm{hr} .=\$ 10 \text { per unit } \\\hline\end{array}$
Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased.
$\begin{array}{|l|r|}\hline \text { Units Produced } & 600 \\\hline \text { Direct Material Used } & 2,000 \mathrm{kgs} . \\\hline \text { Direct Material Purcahsed (3,000 kgs.) } & \$ 11,400 \\\hline \text { Direct Labour Cost }(1,100 \text { hrs. }) & \$ 9,240 \\\hline \text { Variable Manufacturing Overhead Cost Incurred } & \$ 5,720 \\\hline\end{array}$
The company applies variable manufacturing overhead to products on the basis of direct labour hours.

-What was the variable overhead efficiency variance?

A) $500 favourable.
B) $500 unfavourable.
C) $520 favourable.
D) $520 unfavourable.

Question 51

$\text { The Litton Company has established standards as follows: }$
$\begin{array}{|l|r|}\hline \text { Direct Material } & 3 \mathrm{kgs} @ @ 4 / \mathrm{kg} .=\$ 12 \text { per unit } \\\hline \text { Direct Labour } & 2 \mathrm{hrs} @ \$ 8 / \mathrm{hr} .=\$ 16 \text { per unit } \\\hline \text { Variable Manufacturing Overhead } & 2 \text { hrs. @ } \$ 5 / \mathrm{hr} .=\$ 10 \text { per unit } \\\hline\end{array}$
Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased.
$\begin{array}{|l|r|}\hline \text { Units Produced } & 600 \\\hline \text { Direct Material Used } & 2,000 \mathrm{kgs} . \\\hline \text { Direct Material Purcahsed (3,000 kgs.) } & \$ 11,400 \\\hline \text { Direct Labour Cost }(1,100 \text { hrs. }) & \$ 9,240 \\\hline \text { Variable Manufacturing Overhead Cost Incurred } & \$ 5,720 \\\hline\end{array}$
The company applies variable manufacturing overhead to products on the basis of direct labour hours.

-What was the labour efficiency variance?

A) $800 favourable.
B) $800 unfavourable.
C) $840 favourable.
D) $840 unfavourable.

Question 52

Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows:
$\begin{array}{|l|r|r|}\hline & \text { Standard Quantity } & \text { Standard Cost per Bag } \\\hline \text { Direct Materials } & 20 \text { kilograms } & \$ 8.00 \\\hline \text { Direct Labour } & 0.1 \text { hours } & 1.10 \\\hline \text { Variable Manufacturing Overhead } & 0.1 \text { hours } & .40\\\hline \end{array}$
The company had no beginning inventories of any kind on January 1. Variable manufacturing overhead is applied to production on the basis of direct labour hours. The results of the company's operations during January are as follows:
$\begin{array}{|l|r|}\hline \text { Production of Fastgro: } & 4,000 \text { bags } \\\hline \text { Direct Materials Purchased } & 85,000 \text { kilograms at a cost of } \$ 32,300 \\\hline \text { Direct Labour Used } & 390 \text { hours at a cost of } \$ 4,875 \\\hline \text { Variable Manufacturing Overhead Incurred } & \$ 1,475 \\\hline \text { Inventory of Direct Materials on January } 31 & 3,000 \text { kilograms } \\\hline\end{array}$

-What was the labour efficiency variance for January? Do not round intermediate calculations.

A) $110 favourable.
B) $130 unfavourable.
C) $350 unfavourable.
D) $475 favourable.

Question 53

The Albright Company uses standard costing and has established the following standards $f$ its single product:
$\begin{array}{|l|r|}\hline \text { Direct Materials } & 2 \text { litres at \$3 per litre } \\\hline \text { Direct Labour } & 0.5 \text { hours at \$8 per hour } \\\hline \text { Variable Manufacturing Overhead } & 0.5 \text { hours at \$2 per hour } \\\hline\end{array}$
During November, the company made 4,000 units and incurred the following costs:
$\begin{array}{|l|r|}\hline \text { Direct Materials Purchased } & 8,100 \text { litres at } \$ 3.10 \text { per litre } \\\hline \text { Direct Materials Used } & 7,600 \text { litres } \\\hline \text { Direct Labour Used } & 2,200 \text { hours at } \$ 8.25 \text { per hour } \\\hline \text { Actual Variable Manufacturing Overhead } & \$ 4,175 \\\hline\end{array}$
The company applies variable manufacturing overhead to products on the basis of direct labour hours.

-What was the materials quantity variance for November?

A) $300 unfavourable.
B) $1,200 favourable.
C) $1,200 unfavourable.
D) $1,500 favourable.

Question 54

Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows:
$\begin{array}{|l|r|r|}\hline & \text { Standard Quantity } & \text { Standard Cost per Bag } \\\hline \text { Direct Materials } & 20 \text { kilograms } & \$ 8.00 \\\hline \text { Direct Labour } & 0.1 \text { hours } & 1.10 \\\hline \text { Variable Manufacturing Overhead } & 0.1 \text { hours } & .40\\\hline \end{array}$
The company had no beginning inventories of any kind on January 1. Variable manufacturing overhead is applied to production on the basis of direct labour hours. The results of the company's operations during January are as follows:
$\begin{array}{|l|r|}\hline \text { Production of Fastgro: } & 4,000 \text { bags } \\\hline \text { Direct Materials Purchased } & 85,000 \text { kilograms at a cost of } \$ 32,300 \\\hline \text { Direct Labour Used } & 390 \text { hours at a cost of } \$ 4,875 \\\hline \text { Variable Manufacturing Overhead Incurred } & \$ 1,475 \\\hline \text { Inventory of Direct Materials on January } 31 & 3,000 \text { kilograms } \\\hline\end{array}$

-What was the total variance for variable overhead for January?

A) $40 favourable.
B) $85 favourable.
C) $100 unfavourable.
D) $125 favourable.

Question 55

Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product:
$\begin{array} { | l | r | r | r | } \hline & \text { Standard Quantity } & \text { Standard Price } & \text { Standard Cost } \\\hline \text { Direct Materials } & 6 \text { kilograms } & \$ 3.50 / \text { kilogram } & \$ 21.00 \\\hline \text { Direct Labour } & 1.3 \text { hours } & \$ 11.00 / \text { hour } & \$ 14.30 \\\hline & & & \$ 35.30 \\\hline\end{array}$ During March, Bryan purchased 165,000 kilograms of direct materials at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000 units of product during March, using 151,000 kilograms of direct materials and 32,000 direct labour hours.




-What was the direct labour rate variance for March?

A) $8,000 favourable.
B) $8,000 unfavourable.
C) $48,000 favourable.
D) $48,000 unfavourable.

Question 56

Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows:
$\begin{array}{|l|r|r|}\hline & \text { Standard Quantity } & \text { Standard Cost per Bag } \\\hline \text { Direct Materials } & 20 \text { kilograms } & \$ 8.00 \\\hline \text { Direct Labour } & 0.1 \text { hours } & 1.10 \\\hline \text { Variable Manufacturing Overhead } & 0.1 \text { hours } & .40\\\hline \end{array}$
The company had no beginning inventories of any kind on January 1. Variable manufacturing overhead is applied to production on the basis of direct labour hours. The results of the company's operations during January are as follows:
$\begin{array}{|l|r|}\hline \text { Production of Fastgro: } & 4,000 \text { bags } \\\hline \text { Direct Materials Purchased } & 85,000 \text { kilograms at a cost of } \$ 32,300 \\\hline \text { Direct Labour Used } & 390 \text { hours at a cost of } \$ 4,875 \\\hline \text { Variable Manufacturing Overhead Incurred } & \$ 1,475 \\\hline \text { Inventory of Direct Materials on January } 31 & 3,000 \text { kilograms } \\\hline\end{array}$

-What was the materials quantity variance for January?

A) $300 favourable.
B) $300 unfavourable.
C) $750 favourable.
D) $800 unfavourable.

Question 57

Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows:
$\begin{array}{|l|r|r|}\hline & \text { Standard Quantity } & \text { Standard Cost per Bag } \\\hline \text { Direct Materials } & 20 \text { kilograms } & \$ 8.00 \\\hline \text { Direct Labour } & 0.1 \text { hours } & 1.10 \\\hline \text { Variable Manufacturing Overhead } & 0.1 \text { hours } & .40\\\hline \end{array}$
The company had no beginning inventories of any kind on January 1. Variable manufacturing overhead is applied to production on the basis of direct labour hours. The results of the company's operations during January are as follows:
$\begin{array}{|l|r|}\hline \text { Production of Fastgro: } & 4,000 \text { bags } \\\hline \text { Direct Materials Purchased } & 85,000 \text { kilograms at a cost of } \$ 32,300 \\\hline \text { Direct Labour Used } & 390 \text { hours at a cost of } \$ 4,875 \\\hline \text { Variable Manufacturing Overhead Incurred } & \$ 1,475 \\\hline \text { Inventory of Direct Materials on January } 31 & 3,000 \text { kilograms } \\\hline\end{array}$

-What was the materials price variance for January?

A) $1,300 unfavourable.
B) $1,640 favourable.
C) $1,640 unfavourable.
D) $1,700 favourable.

Question 58

The Albright Company uses standard costing and has established the following standards $f$ its single product:
$\begin{array}{|l|r|}\hline \text { Direct Materials } & 2 \text { litres at \$3 per litre } \\\hline \text { Direct Labour } & 0.5 \text { hours at \$8 per hour } \\\hline \text { Variable Manufacturing Overhead } & 0.5 \text { hours at \$2 per hour } \\\hline\end{array}$
During November, the company made 4,000 units and incurred the following costs:
$\begin{array}{|l|r|}\hline \text { Direct Materials Purchased } & 8,100 \text { litres at } \$ 3.10 \text { per litre } \\\hline \text { Direct Materials Used } & 7,600 \text { litres } \\\hline \text { Direct Labour Used } & 2,200 \text { hours at } \$ 8.25 \text { per hour } \\\hline \text { Actual Variable Manufacturing Overhead } & \$ 4,175 \\\hline\end{array}$
The company applies variable manufacturing overhead to products on the basis of direct labour hours.

-What was the labour efficiency variance for November?

A) $550 unfavourable.
B) $1,050 unfavourable.
C) $1,600 favourable.
D) $1,600 unfavourable.

Question 59

The Albright Company uses standard costing and has established the following standards $f$ its single product:
$\begin{array}{|l|r|}\hline \text { Direct Materials } & 2 \text { litres at \$3 per litre } \\\hline \text { Direct Labour } & 0.5 \text { hours at \$8 per hour } \\\hline \text { Variable Manufacturing Overhead } & 0.5 \text { hours at \$2 per hour } \\\hline\end{array}$
During November, the company made 4,000 units and incurred the following costs:
$\begin{array}{|l|r|}\hline \text { Direct Materials Purchased } & 8,100 \text { litres at } \$ 3.10 \text { per litre } \\\hline \text { Direct Materials Used } & 7,600 \text { litres } \\\hline \text { Direct Labour Used } & 2,200 \text { hours at } \$ 8.25 \text { per hour } \\\hline \text { Actual Variable Manufacturing Overhead } & \$ 4,175 \\\hline\end{array}$
The company applies variable manufacturing overhead to products on the basis of direct labour hours.

-What was the materials price variance for November?

A) $810 favourable.
B) $810 unfavourable.
C) $2,310 favourable.
D) $2,310 unfavourable.

Question 60

$\text { The Litton Company has established standards as follows: }$
$\begin{array}{|l|r|}\hline \text { Direct Material } & 3 \mathrm{kgs} @ @ 4 / \mathrm{kg} .=\$ 12 \text { per unit } \\\hline \text { Direct Labour } & 2 \mathrm{hrs} @ \$ 8 / \mathrm{hr} .=\$ 16 \text { per unit } \\\hline \text { Variable Manufacturing Overhead } & 2 \text { hrs. @ } \$ 5 / \mathrm{hr} .=\$ 10 \text { per unit } \\\hline\end{array}$
Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased.
$\begin{array}{|l|r|}\hline \text { Units Produced } & 600 \\\hline \text { Direct Material Used } & 2,000 \mathrm{kgs} . \\\hline \text { Direct Material Purcahsed (3,000 kgs.) } & \$ 11,400 \\\hline \text { Direct Labour Cost }(1,100 \text { hrs. }) & \$ 9,240 \\\hline \text { Variable Manufacturing Overhead Cost Incurred } & \$ 5,720 \\\hline\end{array}$
The company applies variable manufacturing overhead to products on the basis of direct labour hours.

-What was the materials quantity variance?

A) $760 favourable.
B) $760 unfavourable.
C) $800 unfavourable.
D) $4,000 unfavourable.

Question 61

The following materials standards have been established for a particular product:
$\begin{array}{|l|r|}\hline \text { Standard quantity per unit of output } & 4.4 \text { kilograms } \\\hline \text { Standard price } & \$ 13.20 \text { per kilogram } \\\hline\end{array}$
The following data pertain to operations concerning the product for the last month:
$\begin{array}{|l|r|}\hline \text { Actual materials purchased } & 4,800 \text { kilograms } \\\hline \text { Actual cost of materials purchased } & \$ 62,880 \\\hline \text { Actual materials used in production } & 4,300 \text { kilograms } \\\hline \text { Actual output } & 70 \text { units } \\\hline\end{array}$

-What was the materials price variance for the month?

A) $430 favourable.
B) $430 unfavourable.
C) $480 favourable.
D) $480 unfavourable.

Question 62

The following standards for variable manufacturing overhead have been established for a company that makes only one product:

$\begin{array}{l}\begin{array} { | l | r | } \hline \text { Standard hours per unit of output } & 1.6 \text { hours } \\\hline \text { Standard variable overhead rate } & \$ 11.55 \text { per hour } \\\hline\end{array}\\\text { The following data pertain to operations for the last month: }\\\begin{array} { | l | r | } \hline \text { Actual hours } & 4,900 \text { hours } \\\hline \text { Actual total variable overhead cost } & \$ 58,310 \\\hline \text { Actual output } & 3,000 \text { units } \\\hline\end{array}\end{array}$

-What was the variable overhead spending variance for the month?

A) $1,715 favourable.
B) $1,715 unfavourable.
C) $2,870 favourable.
D) $2,870 unfavourable.

Question 63

The following materials standards have been established for a particular product:
$\begin{array}{|l|r|}\hline \text { Standard quantity per unit of output } & 4.4 \text { kilograms } \\\hline \text { Standard price } & \$ 13.20 \text { per kilogram } \\\hline\end{array}$
The following data pertain to operations concerning the product for the last month:
$\begin{array}{|l|r|}\hline \text { Actual materials purchased } & 4,800 \text { kilograms } \\\hline \text { Actual cost of materials purchased } & \$ 62,880 \\\hline \text { Actual materials used in production } & 4,300 \text { kilograms } \\\hline \text { Actual output } & 70 \text { units } \\\hline\end{array}$

-What was the materials quantity variance for the month?

A) $6,550 unfavourable.
B) $6,600 unfavourable.
C) $15,982 unfavourable.
D) $16,104 unfavourable.

Question 64

The Clark Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow:
$\begin{array} { | l | r | } \hline \text { Labour rate variance } & \$ 7,000 \text { favourable } \\\hline \text { Labour efficiency variance } & \$ 12,000 \text { favourable } \\\hline \text { Variable overhead efficiency variance } & \$ 4,000 \text { favourable } \\\hline \text { Number of units produced } & 10,000 \\\hline \text { Standard labour rate per direct labour hour } & \$ 12 \\\hline \text { Standard variable overhead rate per direct labour hour } & \$ 4 \\\hline \text { Actual labour hours used } & 14,000 \\\hline \text { Actual variable manufacturing overhead costs } & \$ 58,290 \\\hline\end{array}$



-What was the variable overhead spending variance for May?

A) $1,710 favourable.
B) $1,710 unfavourable.
C) $2,290 favourable.
D) $2,290 unfavourable.

Question 65

$\begin{array}{l}\text { The following labour standards have been established for a particular product: }\\\begin{array} { | l | r | } \hline \text { Standard labour hours per unit of output } & 7.5 \text { hours } \\\hline \text { Standard labour rate } & \$ 15.25 \text { per hour } \\\hline\end{array}\end{array}$
$\begin{array}{l}\text { The following data pertain to operations concerning the product for the last month: }\\\begin{array} { | l | r | } \hline \text { Actual hours worked } & 9,600 \text { hours } \\\hline \text { Actual total labour cost } & \$ 144,480 \\\hline \text { Actual output } & 1,200 \text { units } \\\hline\end{array}\end{array}$

-What was the labour efficiency variance for the month?

A) $7,230 favourable.
B) $7,230 unfavourable.
C) $9,030 unfavourable.
D) $9,150 unfavourable.

Question 66

The Clark Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow:
$\begin{array} { | l | r | } \hline \text { Labour rate variance } & \$ 7,000 \text { favourable } \\\hline \text { Labour efficiency variance } & \$ 12,000 \text { favourable } \\\hline \text { Variable overhead efficiency variance } & \$ 4,000 \text { favourable } \\\hline \text { Number of units produced } & 10,000 \\\hline \text { Standard labour rate per direct labour hour } & \$ 12 \\\hline \text { Standard variable overhead rate per direct labour hour } & \$ 4 \\\hline \text { Actual labour hours used } & 14,000 \\\hline \text { Actual variable manufacturing overhead costs } & \$ 58,290 \\\hline\end{array}$



-What was the total standard cost for variable overhead for May?

A) $40,000.
B) $50,000.
C) $56,000.
D) $60,000.

Question 67

The Alpha Company produces toys for national distribution. Standards for a particular toy are:

Materials: 12 grams per unit at 56?per gram.
Labour: 2 hours per unit at $2.75 per hour.

During the month of December, the company produced 1,000 units. Information for the month follows:

Materials: 14,000 grams were purchased and used at a total cost of $7,140.
Labour: 2,500 hours worked at a total cost of $8,000.



-What was the materials quantity variance?

A) $1,120 favourable.
B) $1,120 unfavourable.
C) $1,820 favourable.
D) $1,820 unfavourable.

Question 68

$\begin{array}{l}\text { The following materials standards have been established for a particular product: }\\\begin{array} { | l | r | } \hline \text { Standard quantity per unit of output } & 6.8 \text { metres } \\\hline \text { Standard price } & \$ 17.10 \text { per metre } \\\hline\end{array}\end{array}$
$\begin{array}{l}\text { The following data pertain to operations concerning the product for the last month: }\\\begin{array} { | l | r | } \hline \text { Actual materials purchased } & 9,000 \text { metres } \\\hline \text { Actual cost of materials purchased } & \$ 156,600 \\\hline \text { Actual materials used in production } & 8,500 \text { metres } \\\hline \text { Actual output } & 1,200 \text { units } \\\hline\end{array}\end{array}$

-What was the materials price variance for the month?

A) $2,550 favourable.
B) $2,550 unfavourable.
C) $2,700 favourable.
D) $2,700 unfavourable.

Question 69

$\begin{array}{l}\text { The following materials standards have been established for a particular product: }\\\begin{array} { | l | r | } \hline \text { Standard quantity per unit of output } & 1.9 \text { grams } \\\hline \text { Standard price } & \$ 18.00 \text { per gram } \\\hline\end{array}\end{array}$
$\begin{array}{l}\text { The following data pertain to operations concerning the product for the last month: }\\\begin{array} { | l | r | } \hline \text { Actual materials purchased } & 5,800 \text { grams } \\\hline \text { Actual cost of materials purchased } & \$ 108,460 \\\hline \text { Actual materials used in production } & 5,200 \text { grams } \\\hline \text { Actual output } & 2,700 \text { units } \\\hline\end{array}\end{array}$

-What was the materials quantity variance for the month?

A) $1,260 unfavourable.
B) $1,309 unfavourable.
C) $10,880 unfavourable.
D) $11,220 unfavourable.

Question 70

The Dexon Company makes and sells a single product, called a Mip, and employs a standard costing system. The following standards have been established for one unit of Mip: $\begin{array}{|l|r|r|}\hline & \text { Standard Quantity or Hours } & \text { Standard Cost per Mip } \\\hline \text { Direct Materials } & 6 \text { board metre } & \$ 9.00 \\\hline \text { Direct Labour } & 0.8 \text { hours } & \$ 9.60 \\\hline\end{array}$
There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board metres at the total cost of $\$ 24,000$ .
Used 12,000 board metres to produce 2,100 Mips.
Used 1,700 hours of direct labour time at a total cost of $\$ 20,060$ .

- To record the incurrence of direct labour costs and its use in production,the general ledger would include what entry to the Labour Efficiency Variance account?

A) $240 debit.
B) $480 credit.
C) $1,200 debit.
D) $1,200 credit.

Question 71

The Alpha Company produces toys for national distribution. Standards for a particular toy are:

Materials: 12 grams per unit at 56?per gram.
Labour: 2 hours per unit at $2.75 per hour.

During the month of December, the company produced 1,000 units. Information for the month follows:

Materials: 14,000 grams were purchased and used at a total cost of $7,140.
Labour: 2,500 hours worked at a total cost of $8,000.



-What was the labour rate variance?

A) $1,125 favourable.
B) $1,125 unfavourable.
C) $2,500 favourable.
D) $2,500 unfavourable.

Question 72

$\begin{array}{l}\text { The following materials standards have been established for a particular product: }\\\begin{array} { | l | r | } \hline \text { Standard quantity per unit of output } & 1.9 \text { grams } \\\hline \text { Standard price } & \$ 18.00 \text { per gram } \\\hline\end{array}\end{array}$
$\begin{array}{l}\text { The following data pertain to operations concerning the product for the last month: }\\\begin{array} { | l | r | } \hline \text { Actual materials purchased } & 5,800 \text { grams } \\\hline \text { Actual cost of materials purchased } & \$ 108,460 \\\hline \text { Actual materials used in production } & 5,200 \text { grams } \\\hline \text { Actual output } & 2,700 \text { units } \\\hline\end{array}\end{array}$

-What was the materials price variance for the month?

A) $3,640 favourable.
B) $3,640 unfavourable.
C) $4,060 favourable.
D) $4,060 unfavourable.

Question 73

The Alpha Company produces toys for national distribution. Standards for a particular toy are:

Materials: 12 grams per unit at 56?per gram.
Labour: 2 hours per unit at $2.75 per hour.

During the month of December, the company produced 1,000 units. Information for the month follows:

Materials: 14,000 grams were purchased and used at a total cost of $7,140.
Labour: 2,500 hours worked at a total cost of $8,000.



-What was the materials price variance?

A) $420 favourable.
B) $420 unfavourable.
C) $700 favourable.
D) $700 unfavourable.

Question 74

The Clark Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow:
$\begin{array} { | l | r | } \hline \text { Labour rate variance } & \$ 7,000 \text { favourable } \\\hline \text { Labour efficiency variance } & \$ 12,000 \text { favourable } \\\hline \text { Variable overhead efficiency variance } & \$ 4,000 \text { favourable } \\\hline \text { Number of units produced } & 10,000 \\\hline \text { Standard labour rate per direct labour hour } & \$ 12 \\\hline \text { Standard variable overhead rate per direct labour hour } & \$ 4 \\\hline \text { Actual labour hours used } & 14,000 \\\hline \text { Actual variable manufacturing overhead costs } & \$ 58,290 \\\hline\end{array}$



-What are the standard hours allowed to make one unit of finished product?

A) 1.0 hours.
B) 1.2 hours.
C) 1.5 hours.
D) 2.0 hours.

Question 75

The Dexon Company makes and sells a single product, called a Mip, and employs a standard costing system. The following standards have been established for one unit of Mip: $\begin{array}{|l|r|r|}\hline & \text { Standard Quantity or Hours } & \text { Standard Cost per Mip } \\\hline \text { Direct Materials } & 6 \text { board metre } & \$ 9.00 \\\hline \text { Direct Labour } & 0.8 \text { hours } & \$ 9.60 \\\hline\end{array}$
There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board metres at the total cost of $\$ 24,000$ .
Used 12,000 board metres to produce 2,100 Mips.
Used 1,700 hours of direct labour time at a total cost of $\$ 20,060$ .

- To record the incurrence of direct labour cost and its use in production,the general ledger would include what entry to the Labour Rate Variance account?

A) $240 credit.
B) $240 debit.
C) $340 debit.
D) $340 credit.

Question 76

The Clark Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow:
$\begin{array} { | l | r | } \hline \text { Labour rate variance } & \$ 7,000 \text { favourable } \\\hline \text { Labour efficiency variance } & \$ 12,000 \text { favourable } \\\hline \text { Variable overhead efficiency variance } & \$ 4,000 \text { favourable } \\\hline \text { Number of units produced } & 10,000 \\\hline \text { Standard labour rate per direct labour hour } & \$ 12 \\\hline \text { Standard variable overhead rate per direct labour hour } & \$ 4 \\\hline \text { Actual labour hours used } & 14,000 \\\hline \text { Actual variable manufacturing overhead costs } & \$ 58,290 \\\hline\end{array}$



-What was the actual direct labour rate for May in dollars per hour?

A) $11.50.
B) $11.75.
C) $12.00.
D) $12.50.

Question 77

$\begin{array}{l}\text { The following materials standards have been established for a particular product: }\\\begin{array} { | l | r | } \hline \text { Standard quantity per unit of output } & 6.8 \text { metres } \\\hline \text { Standard price } & \$ 17.10 \text { per metre } \\\hline\end{array}\end{array}$
$\begin{array}{l}\text { The following data pertain to operations concerning the product for the last month: }\\\begin{array} { | l | r | } \hline \text { Actual materials purchased } & 9,000 \text { metres } \\\hline \text { Actual cost of materials purchased } & \$ 156,600 \\\hline \text { Actual materials used in production } & 8,500 \text { metres } \\\hline \text { Actual output } & 1,200 \text { units } \\\hline\end{array}\end{array}$

-What was the materials quantity variance for the month?

A) $5,814 unfavourable.
B) $5,916 unfavourable.
C) $8,550 unfavourable.
D) $8,700 unfavourable.

Question 78

The Clark Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow:
$\begin{array} { | l | r | } \hline \text { Labour rate variance } & \$ 7,000 \text { favourable } \\\hline \text { Labour efficiency variance } & \$ 12,000 \text { favourable } \\\hline \text { Variable overhead efficiency variance } & \$ 4,000 \text { favourable } \\\hline \text { Number of units produced } & 10,000 \\\hline \text { Standard labour rate per direct labour hour } & \$ 12 \\\hline \text { Standard variable overhead rate per direct labour hour } & \$ 4 \\\hline \text { Actual labour hours used } & 14,000 \\\hline \text { Actual variable manufacturing overhead costs } & \$ 58,290 \\\hline\end{array}$



-What was the total standard cost for direct labour for May?

A) $120,000.
B) $161,000.
C) $168,000.
D) $180,000.

Question 79

The Alpha Company produces toys for national distribution. Standards for a particular toy are:

Materials: 12 grams per unit at 56?per gram.
Labour: 2 hours per unit at $2.75 per hour.

During the month of December, the company produced 1,000 units. Information for the month follows:

Materials: 14,000 grams were purchased and used at a total cost of $7,140.
Labour: 2,500 hours worked at a total cost of $8,000.



-What was the labour efficiency variance?

A) $1,375 favourable.
B) $1,375 unfavourable.
C) $1,600 favourable.
D) $1,600 unfavourable.

Question 80

$\begin{array}{l}\text { The following labour standards have been established for a particular product: }\\\begin{array} { | l | r | } \hline \text { Standard labour hours per unit of output } & 7.5 \text { hours } \\\hline \text { Standard labour rate } & \$ 15.25 \text { per hour } \\\hline\end{array}\end{array}$
$\begin{array}{l}\text { The following data pertain to operations concerning the product for the last month: }\\\begin{array} { | l | r | } \hline \text { Actual hours worked } & 9,600 \text { hours } \\\hline \text { Actual total labour cost } & \$ 144,480 \\\hline \text { Actual output } & 1,200 \text { units } \\\hline\end{array}\end{array}$

-What was the labour rate variance for the month?

A) $240 favourable.
B) $240 unfavourable.
C) $1,920 favourable.
D) $1,920 unfavourable.