Question :
Use the information below to answer the following question(s).
A company : 1186329
Use the information below to answer the following question(s).
A company makes table lamps, for which the following standards have been developed:
Standard Inputs
Expected for Each
Unit of Output
Standard Price
Expected per
Unit of Output
Direct materials
20 kilograms
$2 per kilogram
Direct labour
6 hours
$8 per hour
During January, production of 100 lamps was expected, but 110 lamps were actually completed.
Direct materials purchased and used were 2,100 kilograms at an actual price of $2.20 per kilogram.
Direct labour cost for the month was $5,310, and the actual pay per hour was $9.00.
31) The direct-material price variance for January is
A) $420 unfavourable.
B) $420 favourable.
C) $400 favourable.
D) $400 unfavourable.
E) $20 favourable.
32) The direct-labour efficiency variance for the month of January is
A) $630 unfavourable.
B) $560 unfavourable.
C) $630 favourable.
D) $560 favourable.
E) $70 favourable.
33) For any actual level of output, the difference between the input that was actually used and the input should have been used is
A) an effectiveness variance.
B) a purchase cost variance.
C) the variance rate.
D) a price variance.
E) an efficiency variance.
34) When a journal entry is made to record the direct materials used, a debit to the Direct Materials Efficiency Variance
A) indicates the variance is unfavourable.
B) indicates the variance is favourable.
C) is the difference between the actual Costs of Goods Sold and the budgeted Materials Control accounts.
D) is the difference between the debits and credits of all materials related entries.
E) also requires a debit to the materials control account.
Use the information below to answer the following question(s).
All Good Things Ltd. planned on producing 600 units for the year. However, actual production was 400 units.
Information concerning the direct labour cost for All Good Things Ltd. is as follows: actual results 1,000 hours at $25 per hour; static budget amounts were 1,200 hours at $21 per hour.
35) What is the All Good Things Ltd. static-budget variance?
A) $400 F
B) $400 U
C) $600 F
D) $200 F
E) $200 U
36) What is the All Good Things Ltd. flexible-budget variance?
A) $8,400 F
B) $8,400 U
C) $8,200 U
D) $8,200 F
E) $200 U
37) What is the All Good Things Ltd. sales-volume variance?
A) $8,400 F
B) $8,400 U
C) $8,200 U
D) $8,200 F
E) $200 F
38) What is the All Good Things Ltd. direct labour input-price variance?
A) $4,200 U
B) $4,200 F
C) $200 F
D) $4,000 F
E) $4,000 U
39) What is the All Good Things Ltd. direct labour input-efficiency variance?
A) $4,200 U
B) $4,200 F
C) $5,000 U
D) $5,000 F
E) $200 U
Use the information below to answer the following question(s).
Robb Industries Inc. (RII), developed standard costs for direct material and direct labour. In 2013, RII estimated the following standard costs for one of their major products, the 10-litre plastic container.
Budgeted quantity
Budgeted price
Direct materials
0.10 kilograms
$30 per kilogram
Direct labour
0.05 hours
$15 per hour
During June, RII produced and sold 5,000 containers using 490 kilograms of direct materials at an average actual cost per kilogram of $32 and 250 direct manufacturing labour-hours at an average actual wage of $15.25 per hour.
40) June’s direct material flexible-budget variance is
A) $980 unfavourable.
B) $300 favourable.
C) $680 favourable.
D) $980 favourable.
E) $680 unfavourable.
