Question :
31. For purposes of the calculation for the direct materials price : 1295663
31. For purposes of the calculation for the direct materials price variance, when the quantity of materials purchased and used are different, which quantity of materials is relevant?
A. Standard quantity allowed
B. Actual quantity purchased
C. Actual quantity used
D. The lower of the standard quantity allowed or actual quantity purchased
32. For purposes of the calculation for the direct materials usage variance when the quantity of materials purchased and used are different, which quantity of materials is relevant?
A. Actual quantity purchased
B. Actual quantity used
C. The lower of the standard quantity allowed or actual quantity purchased
D. The lower of the actual quantity used or actual quantity purchased
33. Byron Products has a favorable materials price variance. Which of the following would be the least likely reason for this variance?
A. The company overbudgeted the standard price for materials.
B. The company took advantage of purchase discounts from their suppliers.
C. The company’s employees were more efficient with the use of their production time.
D. The company purchased a substandard material at a cheaper price.
34. Lukey Products has an unfavorable materials usage variance. Which of the following would be the most likely reason for this variance?
A. The company underbudgeted the quantity of material to be used for each unit.
B. The company purchased material at a price for less than what was expected.
C. The company budgeted for a lower sales volume than what actually occurred.
D. The company did not use up all the material that had been purchased.
35. Tulley Manufacturing has an unfavorable direct labor rate variance. Which of the following would be the most likely reason for this variance?
A. The company used lower-paid workers than they had expected.
B. Employees took a longer amount of time to produce the product than expected.
C. The company gave employees an unexpected raise due to union negotiations.
D. Employees used more direct materials in the production process than expected.
36. Bukowitz Inc. has a favorable direct labor rate variance. Which of the following would be the most likely reason for this variance?
A. The company used lower-paid workers in the production process more than they had expected.
B. Employees took a shorter amount of time to produce the product than expected.
C. The company used a standard direct labor rate that was too low.
D. Employees used less direct materials in the production process than expected.
37. Dabney Inc. has a favorable direct labor efficiency variance. Which of the following would be the most likely reason for this variance?
A. The company used lower-paid workers in the production process more than they had expected.
B. Employees took a shorter amount of time to produce the product than expected.
C. The company used a standard direct labor rate that was too low.
D. Employees used less direct materials in the production process than expected.
38. In early 2008, Coppelli Inc. had budgeted for the production and sale of 24,000 units. The standard sales price and variable cost per unit were budgeted to be $6.00 and $2.00, respectively. Actual sales for 2008 totaled 25,300 units, and the actual sales price and variable cost per unit were $6.50 and $2.10, respectively. Both budgeted and actual fixed costs were $30,000.
Refer to the Coppelli Inc. information above. What was Coppelli’s sales volume variance for 2008?
A. $ 5,200 F
B. $ 5,720 F
C. $15,320 F
D. $ 9,600 F
39. In early 2008, Coppelli Inc. had budgeted for the production and sale of 24,000 units. The standard sales price and variable cost per unit were budgeted to be $6.00 and $2.00, respectively. Actual sales for 2008 totaled 25,300 units, and the actual sales price and variable cost per unit were $6.50 and $2.10, respectively. Both budgeted and actual fixed costs were $30,000.
Refer to the Coppelli Inc. information above. What was Coppelli’s sales price variance for 2008?
A. $12,650 F
B. $12,650 U
C. $12,000 F
D. $12,000 U
40. At the beginning of the year, Fox Manufacturing had budgeted for the production and sale of 84,000 units. The standard sales price and variable cost per unit were budgeted to be $25.00 and $10.00, respectively. Actual sales for the year totaled 81,000 units, and the actual sales price and variable cost per unit were $24.00 and $10.00, respectively. Both budgeted and actual fixed costs were $75,000.
Refer to the Fox Manufacturing information above. What was Fox’s sales volume variance for the year?
A. $84,000 U
B. $18,200 U
C. $42,000 U
D. $45,000 U
