62.Electric Zero produces relay units for generators. Each relay has a standard material cost of $67. Standards call for two relays per generator. In July, the company purchased 120 relays for $7,560. The company used 104 relays in the production of 50 generators, with 4 relays damaged in the installation process. The standard quantity of labor is 20 hours per generator, with a standard wage rate of $23. The company incurred 1,020 labor hours at a cost of $22,950. How much is the material quantity variance?
A.$480 favorable
B.$268 unfavorable
C.$1,340 unfavorable
D.$592 unfavorable
63.Siggy Inc. budgeted 12,000 and produced 11,000 tape dispensers during June. Resin used to make the dispensers is purchased by the pound. Manufacturing overhead is applied based on units produced. Manufacturing standards and actual costs follow:
StandardsActual
Materials2 pounds @ $5.00 a pound20,900 pounds @ $4.90 per pound
Labor0.25 hours @ $15.00 per hour2,700 hours @ $15.30 per hour
Variable overhead$39,000$36,500
Fixed overhead$1.50 per dispenser$17,250
How much is the standard cost of a tape dispenser?
$18.50
$13.75
$24.75
$18.80
64.Master Auto Parts has a standard labor rate of $10.50 per hour. In September, the company produced 10,000 gears using 24,000 labor hours. The company experienced a favorable labor rate variance of $18,000 during September. How much is Master Auto Parts’ actual labor rate per hour?
A.$9.75
B.$11.25
C.$13.50
D.$7.50
65.Blue Box Beach Chairs has the following standards to make beach chairs:
Standard QuantityStandard Price
Direct materials 2.2 pounds of polywood per chair $3.50 per pound
Direct labor0.65 hours per chair$13.00 per hour
The static budget was based on the production of 6,200 beach chairs. The company used 13,000 pounds of polywood in order to make 6,000 chairs in April. The company purchased 7,000 pounds of polywood at a total cost of $24,150. It also used 3,840 labor hours at a cost of $12.70 per hour. How much is the direct labor efficiency variance?
A.$1,932 unfavorable
B.$1,152 favorable
C.$780 favorable
D.$2,470 favorable
66.Blue Box Beach Chairs has the following standards to make beach chairs:
Standard QuantityStandard Price
Direct materials 2.2 pounds of polywood per chair $3.50 per pound
Direct labor0.65 hours per chair$13.00 per hour
The static budget was based on the production of 6,200 beach chairs. The company used 13,000 pounds of polywood in order to make 6,000 chairs in April. The company purchased 7,000 pounds of polywood at a total cost of $24,150. It also used 3,840 labor hours at a cost of $12.70 per hour. How much is the direct labor rate variance?
A.$1,932 unfavorable
B.$1,152 favorable
C.$780 favorable
D.$2,470 favorable
67.Standard Faucets uses standard costing and recorded the following data for the month of August:
Standard direct labor rate$10.00 per hour
Standard hours allowed for actual production20,000 hours
Actual direct labor rate$10.50 per hour
Labor efficiency variance$5,000 favorable
How much is the labor rate variance for August?
A.$9,750 unfavorable
B.$14,750 unfavorable
C.$4,750 unfavorable
D.$0
68.Paradise Energy Company produces a product with a direct labor standard of 4.5 hours per unit at a rate of $13.50 per hour. During July 2,200 units were produced using 9,825 labor hours at an actual cost of $135,094. How much is the total direct labor variance for July?
A.$2,456 unfavorable
B.$1,013 favorable
C.$1,444 unfavorable
D.$3,469 favorable
69.Which of the following would cause a variance to be unfavorable?
A.The actual price is less than the standard price.
B.The standard hours allowed are less than the actual hours worked.
C.The overhead costs incurred are less than the flexible budget amount.
D.All of these answer choices are correct.
70.Why is the point of purchase the best time to compute material price variances?
A. This is when the company is able to determine the total cost of production.
B. This is when the cost of material will be known.
C. This is when the company knows the amount of materials used in production.
D. This is the only point when the company is able to determine a standard material price.
71.Which one of the following is a possible cause of an unfavorable labor rate variance?
A.The company used attainable standards rather than ideal standards.
B.The company hired new, inexperienced employees.
C.The company produced fewer units than had been planned.
D.The company used more experienced workers than planned.
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