Question : 91. When standard manufacturing costs recorded in the accounts and the : 1225663

91. When standard manufacturing costs are recorded in the accounts and the cost variances are immaterial at the end of the accounting period, the cost variances should be: 

A. Carried forward to the next accounting period.

B. Allocated between cost of goods sold, finished goods, and goods in process.

C. Closed to cost of goods sold.

D. Written off as a selling expense.

E. Ignored.

92. Landlubber Company established a standard direct materials cost of 1.5 gallons at $2 per gallon for one unit of its product. During the past month, actual production was 6,500 units. The material quantity variance was $700 favorable and the material price variance was $470 unfavorable. The entry to charge Goods in Process Inventory for the standard material costs during the month and to record the direct material variances in the accounts would include: 

A. A debit to Goods in Process for $19,500.

B. A credit to Raw Materials for $19,270.

C. A debit to Direct Material Price Variance for $470.

D. A credit to Direct Material Quantity Variance for $700.

E. All of these.

93. When recording the journal entry for labor, the Goods in Process Inventory account is 

A. Debited for standard labor cost.

B. Debited for actual labor cost.

C. Credited for standard labor cost.

D. Credited for actual labor cost.

E. Not used.

94. For the current period, Boggs Company’s manufacturing operations yield a $5,250 unfavorable price variance on its direct materials usage. The actual price per pound is $56.50 and the standard price per pound is $55.00. How many pounds of material are used in the current period? 

A. 5,393.

B. 5,110.

C. 3,500.

D. 3,750.

E. 4,000.

95. Bok Company’s output for the current period was assigned a $200,000 standard direct materials cost. The direct materials variances included a $5,000 favorable price variance and a $3,000 unfavorable quantity variance. What is the actual total direct materials cost for the current period? 

A. $208,000.

B. $198,000.

C. $202,000.

D. $192,000.

E. $205,000.

96. Bok Company’s output for the current period was assigned a $400,000 standard direct labor cost. The direct labor variances included a $10,000 unfavorable direct labor rate variance and a $4,000 favorable direct labor efficiency variance. What is the actual total direct labor cost for the current period? 

A. $414,000.

B. $386,000.

C. $394,000.

D. $406,000.

E. $410,000.

97. Brewer Company specializes in selling used cars. During the month, the dealership sold 22 cars at an average price of $15,000 each. The budget for the month was to sell 20 cars at an average price of $16,000. Compute the dealership’s sales price variance for the month. 

A. $22,000 unfavorable.

B. $10,000 favorable.

C. $22,000 favorable.

D. $32,000 unfavorable.

E. $32,000 favorable.

98. Brewer Company specializes in selling used cars. During the month, the dealership sold 22 cars at an average price of $15,000 each. The budget for the month was to sell 20 cars at an average price of $16,000. Compute the dealership’s sales volume variance for the month. 

A. $22,000 unfavorable.

B. $10,000 favorable.

C. $22,000 favorable.

D. $32,000 unfavorable.

E. $32,000 favorable.

99. Cabot Company collected the following data regarding production of one of its products. Compute the direct materials cost variance.

A. $6,000 favorable.

B. $3,570 unfavorable.

C. $2,430 favorable.

D. $6,000 unfavorable.

E. $3,570 favorable.

100. Cabot Company collected the following data regarding production of one of its products. Compute the direct materials price variance.

A. $2,430 unfavorable.

B. $3,570 unfavorable.

C. $2,430 favorable.

D. $6,000 unfavorable.

E. $3,570 favorable.