Question :
72.Paradise Energy Company produces a product with a direct labor : 1302876
72.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 direct labor efficiency variance for July?
A.$2,456 unfavorable
B.$1,013 favorable
C.$1,444 favorable
D.$3,469 unfavorable
73.Electric Zero produces relay units for generators. Each relay has a standard 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 four relays damaged in the installation process. The standard quantity of labor is 20 hours per generator, with a standard wage rate of $23. In July, the company incurred 1,020 labor hours at a cost of $22,950. How much is the labor rate variance?
A.$460 unfavorable
B.$50 favorable
C.$510 favorable
D.$460 favorable
74.Electric Zero produces relay units for generators. Each relay has a standard 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 four relays damaged in the installation process. The standard quantity of labor is 20 hours per generator, with a standard wage rate of $23. In July, the company incurred 1,020 labor hours at a cost of $22,950. How much is the labor efficiency variance?
A.$460 unfavorable
B.$50 favorable
C.$510 favorable
D.$460 favorable
75.Steep, Inc. budgeted 6,000 cup holders for March. Each holder is sold for $12. Actual production for March was 6,300 cup holders. Standards and actual costs follow for March:
StandardsActual
Materials1.1 pounds @ $2.40 a pound6,400 pounds purchased for $15,040;
6,450 pounds used
Labor0.10 hours @ $14.00 per hour620 hours @ $14.30 per hour
Variable overhead$16,800$18,400
Fixed overhead$9,600$10,300
How much is the labor rate variance?
A.$140 favorable
B.$186 unfavorable
C.$46 unfavorable
D.$280 favorable
76.Steep, Inc. budgeted 6,000 cup holders for March. Each holder is sold for $12. Actual production for March was 6,300 cup holders. Standards and actual costs follow for March:
StandardsActual
Materials1.1 pounds @ $2.40 a pound6,400 pounds purchased for $15,040;
6,450 pounds used
Labor0.10 hours @ $14.00 per hour620 hours @ $14.30 per hour
Variable overhead$16,800$18,400
Fixed overhead$9,600$10,300
How much is the labor efficiency variance?
A.$140 favorable
B.$186 unfavorable
C.$46 unfavorable
D.$280 favorable
77.Which of the following will determine the total variance for manufacturing overhead?
A.The difference between the overhead applied to inventory at standard and the actual overhead costs
B.The difference between fixed overhead and variable overhead
C.The difference between the efficiency variance and the rate variance
D.The difference between the controllable overhead variance and the overhead volume variance
78.If the controllable overhead variance is favorable, the overhead volume variance
A.will be favorable.
B.may be favorable or unfavorable.
C.will not be significant and may be omitted from the analysis.
D.will be zero.
79.What is the difference between the actual amount of overhead and the amount of overhead that would be included in a flexible budget called?
A.Total overhead variance
B.Actual overhead variance
C.Controllable overhead variance
D.Overhead volume variance
80.What will result if the actual overhead costs incurred are greater than the amount in the flexible budget?
A.The controllable overhead variance will be unfavorable.
B.The overhead volume variance will be favorable.
C.The overhead volume variance will be unfavorable.
D.The controllable overhead variance will be favorable.
81.For which of the following reasons does the volume variance arise?
A.Overhead costs incurred were greater or less than the amount budgeted.
B.The company operated at more or less units of production activity than expected during the period.
C.Actual activity equaled the volume used to establish the overhead cost per unit.
D.The company purchased more or less materials for production than the amount used.
