41. Anton Company spent less than expected for materials and more than expected for labor. Select the incorrect statement from the following.
A. It cannot be determined from the information provided whether the company paid a lower purchase price for materials or if workers used less materials.
B. It cannot be determined from the information provided whether employees were paid higher wages or if they worked more hours.
C. You can always expect labor variances if you have favorable material variances.
D. In order to facilitate cost control, it will be necessary to analyze the price and quantity of each resource used in production.
42. The resources used in the manufacturing process are frequently called:
A. Outputs.
B. Standards.
C. Variances.
D. Inputs.
43. Select the correct statement from the following, assuming Camacho Company had a favorable direct materials price variance of $1,500 and an unfavorable direct materials usage variance of $1,000.
A. The total direct materials variance is $2,500 favorable.
B. The total direct materials variance is $2,500 unfavorable.
C. The total direct materials variance is $500 favorable.
D. The total direct materials variance is $500 unfavorable.
44. Gonzalez Company makes a product that is expected to use 1.2 pounds of material per unit of product. The material has a standard cost of $2 per pound. Gonzalez actually used 1.1 pounds of material per unit of product made in January. The actual cost of material was $2.10 per pound. Based on this information alone, the materials variances for the January production would be:
A. Unfavorable for price and unfavorable for usage.
B. Unfavorable for price and favorable for usage.
C. Favorable for price and unfavorable for usage.
D. Favorable for price and favorable for usage.
45. Shimano Company makes a product that is expected to require 2 hours of labor per unit of product. The standard cost of labor is $5.20. Shimano actually used 1.9 hours of labor per unit of product. The actual cost of labor was $5.10 per hour. Shimano made 1,000 units of product during the period. Based on this information alone, the labor price variance is:
A. $190 favorable.
B. $190 unfavorable.
C. $510 favorable.
D. $510 unfavorable.
46. Keiko Company makes a product that is expected to require 2 hours of labor per unit of product. The standard cost of labor is $6.00. Keiko actually used 1.9 hours of labor per unit of product. The actual cost of labor was $6.25 per hour. Keiko made 1,100 units of product during the period. Based on this information alone, the labor usage variance is:
A. $190 favorable.
B. $600 favorable.
C. $660 favorable.
D. $660 unfavorable.
47. The standard amount of materials required to make one unit of Product Q is 4 pounds. Tusa’s static budget showed a planned production of 4,000 units. During the period the company actually produced 4,100 units of product. The actual amount of materials used averaged 4.1 pounds per unit. The standard price of material is $1 per pound. Based on this information, the materials usage variance was:
A. $400 unfavorable.
B. $410 unfavorable.
C. $400 favorable.
D. $410 favorable.
48. The Betsey Company provides the following standard cost data:
The materials price variance was:
A. $7,200 favorable.
B. $7,200 unfavorable.
C. $7,500 favorable.
D. $7,500 unfavorable.
49. The Springer Company provides the following standard cost data:
The materials usage variance was:
A. $15,000 favorable.
B. $15,000 unfavorable.
C. $14,700 favorable.
D. $14,700 unfavorable.
50. The Bach Company provides the following standard cost data:
The direct labor price variance was:
A. $2,400 favorable.
B. $2,400 unfavorable.
C. $2,375 favorable.
D. $2,375 unfavorable.
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