71. The following company information is available:
Direct materials used for production
712 pounds
Standard quantity for units produced
750 pounds
Standard cost per pound of direct material
$48
Actual cost per pound of direct material
$50
The direct materials quantity variance is:A. $1,824 favorableB. $1,424 favorableC. $400 favorableD. $1,824 unfavorableE. $1,424 unfavorable
Reference: 21_03
Bradford Company budgeted 4,000 pounds of material costing $5 per pound to produce 2,000 units. The company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units.
72. What is the direct materials quantity variance?A. $400 unfavorableB. $450 unfavorableC. $2,500 unfavorableD. $2,550 unfavorableE. $2,950 unfavorable
73. What is the direct materials price variance?A. $400 unfavorableB. $450 unfavorableC. $2,500 unfavorableD. $2,550 unfavorableE. $2,950 unfavorable
Reference: 21_04
A company has established 5 pounds of Material M at $2 per pound as the standard for the material in its Product A. The company has just produced 1,000 units of this product, using 5,200 pounds of Material M that cost $9,880.
74. The direct materials quantity variance is:A. $400 unfavorableB. $120 favorableC. $400 favorableD. $520 favorableE. $520 unfavorable
75. The direct materials price variance is:A. $520 unfavorableB. $400 unfavorableC. $120 favorableD. $520 favorableE. $400 favorable
Reference: 21_05
A job was budgeted to require three hours of labor per unit at $8 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000.
76. What is the total labor cost variance?A. $22,000 unfavorable B. $16,000 unfavorable C. $6,000 unfavorable D. $16,000 favorableE. $22,000 favorable
77. What is the labor rate variance?A. $22,000 unfavorable B. $16,000 unfavorable C. $6,000 unfavorable D. $16,000 favorableE. $22,000 favorable
78. What is the total labor efficiency variance?A. $22,000 unfavorable B. $16,000 unfavorable C. $6,000 unfavorable D. $16,000 favorableE. $22,000 favorable
79. The entry to record the labor costs and variances would include a:
A. debit to Goods in Process for $198,000.
B. credit to Factory Payroll for $192,000.
C. debit to Direct Labor Cost Variance for $6,000.
D. credit to Direct Labor Cost Variance for $6,000.
E. credit to Direct Labor Efficiency Variance for $16,000
80. The standard materials cost to produce one 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 material cost variance?A. $48,000 unfavorableB. $51,000 favorableC. $51,000 unfavorableD. $ 3,000 favorableE. $ 3,000 unfavorable
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