Question : 83. The journal entry to record the cost of direct materials : 1229627

83. The journal entry to record the cost of direct materials used in June includes: 
A. A debit to Work-in-Process Inventory of $12,220.
B. A credit to Materials Price Variance of $520.
C. A debit to Materials Price Variance of $520.
D. A credit to Direct Materials Inventory of $12,250.

84. With respect to materials costs, the supervisor of the Production Department should be held responsible for: 
A. A favorable cost variance of $520.
B. A favorable cost variance of $990.
C. An unfavorable cost variance of $550.
D. An unfavorable cost variance of $490.

Roman Mfg.’s July production involved actual direct labor costs of $46,287 for 3,700 direct labor hours. The budget for the July level of production called for 3,800 direct labor hours at $12.50 per hour, using a standard cost system.

85. With respect to labor costs, Roman’s production manager is responsible for: 
A. Any labor rate variance as well as any labor efficiency variance.
B. Only a labor rate variance.
C. Only a labor efficiency variance.
D. Only unfavorable labor variances.

86. Roman’s labor rate variance for July is: 
A. $1,250 favorable.
B. $1,213 favorable.
C. $37 unfavorable.
D. $1,213 unfavorable.

87. Roman’s labor efficiency variance for July is: 
A. $1,250 favorable.
B. $1,190 favorable.
C. $1,213 unfavorable.
D. $37 unfavorable.

88. Which of the following is the most likely explanation for the types of labor variances resulting from Roman’s July operations? 
A. Management used workers who received a higher wage and worked more efficiently.
B. Management reduced the wage rates in July, which caused the workers to deliberately slow down productivity.
C. Management used less experienced workers whose lower wage rate more than offset their lower productivity.
D. Management paid workers more than standard hourly rates, but the excess pay did not result in increased productivity.

Eagle Company uses a standard cost system which has provided the following data:

89. The direct labor rate variance for the period was: 
A. $425 favorable.
B. $360 favorable.
C. $360 unfavorable.
D. $425 unfavorable.

90. The direct labor efficiency variance for the period was: 
A. $360 favorable.
B. $360 unfavorable.
C. $320 favorable.
D. $320 unfavorable.

91. The journal entry to record the cost of direct labor used in this period includes: 
A. A debit to Work-In-Process Inventory of $2,880.
B. A debit to Work-In-Process Inventory of $2,560.
C. A credit to Direct Labor Rate Variance of $320.
D. A debit to Direct Labor Rate Variance of $360.

Cooper Corporation produces decorator wall coverings. Budgeted production is 240,000 square feet per month, and the standard direct labor requirement to make this amount is 6,000 hours. All overhead is allocated based on direct labor hours. The following information is available:

92. The journal entry to apply overhead to Work-In-Process Inventory for the month included: 
A. A debit to Work-In-Process Inventory of $16,000.
B. A debit to Work-In-Process Inventory of $13,500.
C. A debit to Work-In-Process Inventory of $16,875.
D. A credit to Work-In-Process Inventory of $875.

93. The overhead spending variance for the month in question was: 
A. $250 unfavorable.
B. $2,500 unfavorable.
C. $875 favorable.
D. $3,375 unfavorable.

94. The overhead volume variance for the month in question was: 
A. $250 unfavorable.
B. $1,125 favorable.
C. $3,375 favorable.
D. $1,125 unfavorable.

The Starbright Corporation has compiled the following data. The company intends to use this information to develop standard costs per unit for its single product:

Direct materials = $50 per ton

Direct labor = $12.75 per hour

Variable manufacturing overhead = $5 per direct labor hour

Fixed manufacturing overhead = $18,700

Expected production = 1,700 units

Each unit of the company’s single product requires 2.5 tons of direct materials and 22.5 hours to manufacture.

95. What is the standard cost for direct materials? 
A. $50.
B. $100.
C. $150.
D. $125.

96. What is the standard cost for direct labor? 
A. $100.
B. $287.
C. $180.
D. $285.

97. What is the standard total manufacturing overhead? 
A. $112.50.
B. $18,700.
C. $287.
D. $18,812.50.