Question : 52.An automobile parts company has a standard material price of : 1302874

52.An automobile parts company has a standard material price of $2 per pound. In October the company produced 4,500 units using 6,000 pounds of material. The company experienced a favorable materials quantity variance of $1,200. How much is the standard quantity of materials per unit?

A.1.20 pounds

B.1 pound

C.2.4 pounds

D.1.47 pounds

53.A manufacturing company has a standard quantity of direct materials of 7 pounds per unit at a standard price of $2.20 per pound. In April the actual material price was $2.40 per pound and the company produced 5,500 units. If the company experienced a favorable material quantity variance of $6,600 during the month, how much was the actual quantity of material used?

A.35,500 pounds

B.32,542 pounds

C.38,500 pounds

D.41,500 pounds

54.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. How much is the direct materials quantity variance?

A.$700 favorable

B.$2,240 favorable

C.$350 favorable

D.$1,050 favorable

55.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. How much is the direct materials price variance?

A.$700 favorable

B.$2,240 favorable

C.$350 favorable

D.$1,050 favorable

56.Last month, Investly Widgets purchased 16,400 pounds of material and used 16,600 pounds in the production of 4,200 widgets. The actual cost per pound of the material was $7.80 and the standard price was $7.75 per pound. The company budgeted 4,500 widgets for production. How much is the material quantity variance?

A.$820 unfavorable

B.$730 favorable

C.$1,550 favorable

D.More information is needed to determine the answer.

57.Which variances are most important to investigate?

A.Variable costs variances, because they are controllable

B.Those that are material in amount

C.Those that are immaterial in amount

D.Those that are unfavorable

58.Which one of the following determines the material price variance?

A.The difference between actual price per unit and standard price per unit times the quantity of material purchased from suppliers

B.The difference between actual price per unit and standard price per unit times standard quantity of material used for the achieved level of production

C.The difference between actual quantity of material purchased and the actual quantity of material used times the standard price of material per unit

D.The difference between actual quantity of material purchased and the actual quantity of material used times the actual price of material per unit purchased

59.What will result if the actual price per unit of material is greater than the standard price?

A.A favorable material price variance

B.An unfavorable material quantity variance

C.An unfavorable material price variance

D.A favorable material quantity variance

60.If the material quantity variance is favorable, the

A.material price variance will be unfavorable.

B.material price variance must also be favorable.

C.quantity purchased is less than the quantity used.

D.actual quantity used is less than the standard quantity allowed.

61.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 price variance?

A.$480 favorable

B.$268 unfavorable

C.$1,340 unfavorable

D.$592 unfavorable