Question 1

If the actual quantity of materials used is less than the standard quantity of materials allowed for the actual output,then the journal entry to record the Direct Materials Quantity Variance would be a debit.

Accepted Answer

A) True 
 B)False

Question 2

Florea Corporation has provided the following data concerning its most important raw material,compound K09B:  The raw material was purchased on account. The Materials Quantity Variance for August would be recorded as a:

Accepted Answer

A) Credit of $24,910 
B) Credit of $1,060 
C) Debit of $1,060 
D) Debit of $24,910

Question 3

When the actual wage rate paid to direct labor workers exceeds the standard wage rate,the journal entry would include:

Accepted Answer

A) Credit to Wages Payable;Credit to Labor Rate Variance 
B) Credit to Work-In-Process;Credit to Labor Rate Variance 
C) Credit to Wages Payable;Debit to Labor Rate Variance 
D) Credit to Work-In-Process;Debit to Labor Rate Variance

Question 4

Widman,Inc.makes and sells only one product and uses standard costing.The standard cost sheet for one unit of product includes the following: • Direct materials: 5 grams at $0.35 per gram
• Direct labor: 1 hour at $8 per hour
Last period the company had the following results:
• 5,000 grams of direct materials purchased at $0.40 per gram
• 4,000 grams of direct materials used in production
• 900 units of product were made
• 850 hours of direct labor were used at $8.50 per hour
The journal entry to record the use of direct materials in production last period would include:

Accepted Answer

A) Work in process $1,400,Debit;materials quantity variance $175,Debit 
B) Work in process $1,575,Debit;materials quantity variance $175,Credit 
C) Work in process $1,400,Debit;materials quantity variance $175,Credit 
D) Work in process $1,575,Debit;materials quantity variance $175,Debit

Question 5

Gainer Corporation's standard wage rate is $11.70 per direct labor-hour (DLH)and according to the standards,each unit of output requires 3.9 DLHs.In February,7,800 units were produced,the actual wage rate was $12.50 per DLH,and the actual hours were 29,940 DLHs.The Labor Rate Variance for February would be recorded as a:

Accepted Answer

A) debit of $23,952. 
B) credit of $23,952. 
C) credit of $24,336. 
D) debit of $24,336.

Question 6

Cafferty Corporation has provided the following data concerning its direct labor costs for March:  The journal entry to record the incurrence of direct labor costs in March would include the following for Work in Process:

Accepted Answer

A) Credit of $33,280 
B) Debit of $35,625 
C) Debit of $33,280 
D) Credit of $35,625

Question 7

Liukko Corporation's standard wage rate is $14.90 per direct labor-hour (DLH)and according to the standards,each unit of output requires 2.8 DLHs.In June,1,800 units were produced,the actual wage rate was $15.80 per DLH,and the actual hours were 5,110 DLHs.The Labor Efficiency Variance for June would be recorded as a:

Accepted Answer

A) debit of $1,106. 
B) credit of $1,106. 
C) credit of $1,043. 
D) debit of $1,043.

Question 8

Cafferty Corporation has provided the following data concerning its direct labor costs for March:  The Labor Efficiency Variance for March would be recorded as a:

Accepted Answer

A) Debit of $3,200 
B) Credit of $3,125 
C) Credit of $3,200 
D) Debit of $3,125

Question 9

Florea Corporation has provided the following data concerning its most important raw material,compound K09B:  The raw material was purchased on account. The Materials Price Variance for August would be recorded as a:

Accepted Answer

A) Credit of $112 
B) Credit of $300 
C) Debit of $112 
D) Debit of $300

Question 10

The standards for product F28 call for 2.7 pounds of a raw material that costs $16.50 per pound.Last month,4,100 pounds of the raw material were purchased for $70,520.The actual output of the month was 1,300 units of product F28.A total of 3,500 pounds of the raw material were used to produce this output.
Required:
a.What is the materials price variance for the month?
b.What is the materials quantity variance for the month?
c.Prepare journal entries to record the purchase and use of the raw material during the month.(All raw materials are purchased on account. )

Accepted Answer

The answer of The standards for product F28 call for...

Question 11

When the actual price to purchase a raw material on account is less than its standard price,the journal entry would include:

Accepted Answer

A) Credit to Raw Materials;Credit to Materials Price Variance 
B) Credit to Accounts Payable;Credit to Materials Price Variance 
C) Credit to Raw Materials;Debit to Materials Price Variance 
D) Credit to Accounts Payable;Debit to Materials Price Variance

Question 12

Gramajo Corporation's standard wage rate is $10.10 per direct labor-hour (DLH)and according to the standards,each unit of output requires 3.4 DLHs.In February,2,400 units were produced,the actual wage rate was $9.40 per DLH,and the actual hours were 7,920 DLHs.In the journal entry to record the incurrence of direct labor costs in February,the Work in Process entry would consist of a:

Accepted Answer

A) credit of $74,448. 
B) debit of $74,448. 
C) debit of $82,416. 
D) credit of $82,416.

Question 13

An unfavorable labor rate variance is recorded as a debit in the Labor Rate Variance account.

Accepted Answer

A) True 
 B)False

Question 14

Barbu Corporation has provided the following data concerning its direct labor costs for June:  The Labor Rate Variance for June would be recorded as a:

Accepted Answer

A) credit of $6,305. 
B) credit of $6,500. 
C) debit of $6,305. 
D) debit of $6,500.

Question 15

Enwall Corporation's standard wage rate is $11.20 per direct labor-hour (DLH)and according to the standards,each unit of output requires 2.9 DLHs.In December,5,900 units were produced,the actual wage rate was $10.20 per DLH,and the actual hours were 14,150 DLHs. In the journal entry to record the incurrence of direct labor costs in December,the Work in Process entry would consist of a:

Accepted Answer

A) credit of $144,330. 
B) debit of $191,632. 
C) debit of $144,330. 
D) credit of $191,632.

Question 16

Data concerning the direct labor costs for March of Boler Corporation appear below:  The journal entry to record the incurrence of direct labor costs in March would include the following for Work in Process:

Accepted Answer

A) credit of $125,139. 
B) debit of $114,948. 
C) credit of $114,948. 
D) debit of $125,139.

Exam 16: Journal Entries to Record Variance

If the actual quantity of materials used is less than the standard quantity of materials allowed for the actual output,then the journal entry to record the Direct Materials Quantity Variance would be a debit.

Florea Corporation has provided the following data concerning its most important raw material,compound K09B: The raw material was purchased on account. The Materials Quantity Variance for August would be recorded as a:

When the actual wage rate paid to direct labor workers exceeds the standard wage rate,the journal entry would include:

Cafferty Corporation has provided the following data concerning its direct labor costs for March: The journal entry to record the incurrence of direct labor costs in March would include the following for Work in Process:

Cafferty Corporation has provided the following data concerning its direct labor costs for March: The Labor Efficiency Variance for March would be recorded as a:

Florea Corporation has provided the following data concerning its most important raw material,compound K09B: The raw material was purchased on account. The Materials Price Variance for August would be recorded as a:

When the actual price to purchase a raw material on account is less than its standard price,the journal entry would include:

An unfavorable labor rate variance is recorded as a debit in the Labor Rate Variance account.

Barbu Corporation has provided the following data concerning its direct labor costs for June: The Labor Rate Variance for June would be recorded as a:

Data concerning the direct labor costs for March of Boler Corporation appear below: The journal entry to record the incurrence of direct labor costs in March would include the following for Work in Process: