University:
Widener University
Course:
ACCT-205 | Managerial Acc
Academic year:

2024
Views:

365

Pages:

6
Author:

Lanrwst4tn

Ch. 10 Practice Quiz 1. The following materials standards have been established for a particular raw material used in the company's sole product: Standard quantity per unit of output Standard price 0.1 pound $18.20 per pound The following data pertain to operations for the last month: Actual materials purchased Actual cost of materials purchased Actual materials used in production Actual output 5,700 pounds $100,320 5,600 pounds 55,800 units What is the materials price variance for the month? A) $1,820 U B) $1,760 U C) $3,420 F D) $352 U Answer: C Level: Easy LO: 2 1 2. A quantity of a particular raw material was purchased for $43,250. The standard cost of the material was $2.00 per kilogram and there was an unfavorable materials price variance of $3,250. How many kilograms were purchased? A) 20,000 B) 21,625 C) 23,250 D) 24,875 Answer: A Level: Hard LO: 2 Source: CIMA, adapted 2 3. The following information pertains to Bates Company's direct labor for March: Standard direct labor-hours Actual direct labor-hours Favorable direct labor rate variance Standard direct labor rate per hour 21,000 20,000 $8,400 $6.30 What was Bates' total actual direct labor cost for March? A) $117,600 B) $118,000 C) $134,000 D) $134,400 Answer: A Level: Hard LO: 3 Source: CPA, adapted 3 The Maxwell Company has a standard costing system in which variable manufacturing overhead is assigned to production on the basis of machine hours. The following data are available for July: Actual variable manufacturing overhead cost incurred: $22,620 Actual machine hours worked: 1,600 Variable overhead spending variance: $3,420 unfavorable Total variable overhead variance: $4,620 unfavorable 4. The standard number of machine hours allowed for July production is: A) 1,500 hours B) 1,600 hours C) 1,700 hours D) 2,270 hours Answer: A Level: Hard LO: 4 4 Vermeillen Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of the number of machine setups. The following data pertain to one month's operations: Variable manufacturing overhead cost incurred: $70,000 Total variable overhead variance: $4,550 favorable Standard machine setups allowed for actual production: 3,550 Actual machine setups incurred: 3,500 5. The standard variable overhead rate per machine setup is: A) $20.00 B) $21.30 C) $18.44 D) $21.00 Answer: D Level: Hard LO: 4 5 Use the following to answer questions 6-7: The Dresden Company uses standard costing for the single product the company makes and sells. The following data are for the month of April: Actual cost of direct material purchased and used: $62,400 Material price variance: $4,800 unfavorable Total materials variance: $14,400 unfavorable Standard cost per pound of material: $6 Standard cost per direct labor hour: $8 Actual direct labor hours: 3,800 hours Labor efficiency variance: $1,600 favorable Standard number of direct labor hour per unit of product: 2 Total labor variance: $680 unfavorable 6. The total number of units produced during April was: A) 8,000 B) 12,000 C) 2,000 D) 3,800 Answer: C Level: Hard LO: 2 7. The actual direct labor rate per hour was: A) $16.00 B) $6.50 C) $8.00 D) $8.60 Answer: D Level: Hard LO: 3 6