Question : 89.              The standard rate of pay $20 per direct labor : 1311902

 

 

89.              The standard rate of pay is $20 per direct labor hour. If the actual direct labor payroll was $117,600 for 6,000 direct labor hours worked, the direct labor price (rate) variance is

a.$2,400 unfavorable.

b.$2,400 favorable.

c.$3,000 unfavorable.

d.$3,000 favorable.

 

 

90.              The standard number of hours that should have been worked for the output attained is 6,000 direct labor hours and the actual number of direct labor hours worked was 6,300. If the direct labor price variance was $3,150 unfavorable, and the standard rate of pay was $9 per direct labor hour, what was the actual rate of pay for direct labor?

a.$8.50 per direct labor hour

b.$7.50 per direct labor hour

c.$9.50 per direct labor hour

d.$9.00 per direct labor hour

 

 

91.              Which one of the following statements is true?

a.If the materials price variance is unfavorable, then the materials quantity variance must also be unfavorable.

b.If the materials price variance is unfavorable, then the materials quantity variance must be favorable.

c.Price and quantity variances move in the same direction. If one is favorable, the others will be as well.

d.There is no correlation of favorable or unfavorable for price and quantity variances.

 

 

92.              Variances from standards are

a.expressed in total dollars.

b.expressed on a per-unit basis.

c.expressed on a percentage basis.

d.all of these.

 

 

93.              A favorable variance

a.is an indication that the company is not operating in an optimal manner.

b.implies a positive result if quality control standards are met.

c.implies a positive result if standards are flexible.

d.means that standards are too loosely specified.

 

 

94.              The total materials variance is equal to the

a.materials price variance.

b.difference between the materials price variance and materials quantity variance.

c.product of the materials price variance and the materials quantity variance.

d.sum of the materials price variance and the materials quantity variance.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

95.              Information on Jayhawk’s direct labor costs for the month of August is as follows:

Actual rate $10

Standard hours 11,000

Actual hours 10,000

Direct labor price variance—unfavorable $4,000

What was the standard rate for August?

a.$9.96c.$10.40

b.$9.60d.$10.04

 

 

96.              The total variance is $35,000. The total materials variance is $14,000. The total labor variance is twice the total overhead variance. What is the total overhead variance?

a.$3,500

b.$7,000

c.$10,500

d.$14,000

 

 

97.              The formula for the materials price variance is

a.(AQ × SP) – (SQ × SP).

b.(AQ × AP) – (AQ × SP).

c.(AQ × AP) – (SQ × SP).

d.(AQ × SP) – (SQ × AP).

 

 

98.              The formula for the materials quantity variance is

a.(SQ × AP) – (SQ × SP).

b.(AQ × AP) – (AQ × SP).

c.(AQ × SP) – (SQ × SP).

d.(AQ × AP) – (SQ × SP).