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Question;101. A company uses 20,000 pounds of materials;for which it paid $6.00 a pound. The materials price variance was $15,000;unfavorable. What is the standard price per pound?;a. $0.75;b. $5.25;c. $6.00;d. $6.75;102. If the materials price variance is $3,600 F;and the materials quantity and labor variances are each $2,700 U, what is the;total materials variance?;a. $3,600;F;b. $2,700;U;c. $900;F;d. $4,050;U;103. Edgar, Inc. has a materials price standard;of $2.00 per pound. Six thousand pounds of materials were purchased at $2.20 a;pound. The actual quantity of materials used was 6,000 pounds, although the;standard quantity allowed for the output was 5,400 pounds.;Edgar, Inc.'s materials price variance;is;a. $120;U.;b. $1,200;U.;c. $1,080;U.;d. $1,200;F.;104. Edgar, Inc. has a materials price standard;of $2.00 per pound. Six thousand pounds of materials were purchased at $2.20 a;pound. The actual quantity of materials used was 6,000 pounds, although the;standard quantity allowed for the output was 5,400 pounds.;Edgar, Inc.'s materials quantity;variance is;a. $1,200;U.;b. $1,200;F.;c. $1,320;F.;d. $1,320;U.;105. Edgar, Inc. has a materials price standard;of $2.00 per pound. Six thousand pounds of materials were purchased at $2.20 a;pound. The actual quantity of materials used was 6,000 pounds, although the;standard quantity allowed for the output was 5,400 pounds.;Edgar, Inc.'s total materials variance;is;a. $2,400;U.;b. $2,400;F.;c. $2,520;U.;d. $2,520;F.;106. The standard quantity;allowed for the units produced was 4,500 pounds, the standard price was $2.50;per pound, and the materials quantity variance was $375 favorable. Each unit;uses 1 pound of materials. How many units were actually produced?;a. 4,350;b. 4,500;c. 11,625;d. 4,650;107. The matrix approach to variance analysis;a. will;yield slightly different variances than the formula approach.;b. is;more accurate than the formula approach.;c. does;not separate the price and quantity variance calculations.;d. provides;a convenient structure for determining each variance.;108. Labor efficiency is measured by the;a. materials;quantity variance.;b. total;labor variance.;c. labor;quantity variance.;d. labor;rate variance.;109. An unfavorable labor quantity variance may;be caused by;a. paying;workers higher wages than expected.;b. misallocation;of workers.;c. worker;fatigue or carelessness.;d. higher;pay rates mandated by union contracts.;110. The investigation of materials price;variance usually begins in the;a. first;production department.;b. purchasing;department.;c. controller's;office.;d. accounts;payable department.;111. The investigation of a materials quantity;variance usually begins in the;a. production;department.;b. purchasing;department.;c. sales;department.;d. controller's;department.;112. If the labor quantity variance is;unfavorable and the cause is inefficient use of direct labor, the;responsibility rests with the;a. sales;department.;b. production;department.;c. budget;office.;d. controller's;department.;113. Monster Company produces a product;requiring 3 direct labor hours at $16.00 per hour. During January, 2,000;products are produced using 6,300 direct labor hours. Monster?s actual payroll;during January was $98,280. What is the;labor quantity variance?;a. $2,280;U;b. $4,800;F;c. $2,520;F;d. $4,800;U;114. A;company developed the following per-unit standards for its product: 2 gallons;of direct materials at $8 per gallon. Last month, 3,000 gallons of direct;materials were purchased for $22,800.;The direct materials price variance for last month was;a. $22,800;favorable.;b. $600;favorable.;c. $1,200;favorable.;d. $1,200;unfavorable.;115. The per-unit standards for direct materials;are 2 pounds at $5 per pound. Last month, 11,200 pounds of direct materials;that actually cost $53,000 were used to produce 6,000 units of product. The;direct materials quantity variance for last month was;a. $4,000;favorable.;b. $3,000;favorable.;c. $4,000;unfavorable.;d. $7,000;unfavorable.;116. The per-unit standards for direct labor are;1.5 direct labor hours at $15 per hour. If in producing 2,400 units, the actual;direct labor cost was $46,000 for 3,000 direct labor hours worked, the total;direct labor variance is;a. $2,400;unfavorable.;b. $8,000;favorable.;c. $5,000;unfavorable.;d. $8,000;unfavorable.;117. The;standard rate of pay is $12 per direct labor hour. If the actual direct labor payroll was $47,040;for 4,000 direct labor hours worked, the direct labor price (rate) variance is;a. $960;unfavorable.;b. $960;favorable.;c. $1,200;unfavorable.;d. $1,200;favorable.;118. The;standard number of hours that should have been worked for the output attained;is 10,000 direct labor hours and the actual number of direct labor hours worked;was 10,500. If the direct labor price variance was $10,500 unfavorable, and the;standard rate of pay was $12 per direct labor hour, what was the actual rate of;pay for direct labor?;a. $11;per direct labor hour;b. $9;per direct labor hour;c. $13;per direct labor hour;d. $12;per direct labor hour;119. A;company purchases 12,000 pounds of materials. The materials price variance is;$6,000 favorable. What is the difference between the standard and actual price;paid for the materials?;a. $1.00;b. $.50;c. $2.00;d. $6.00;120. A company uses 40,000 gallons of materials;for which they paid $7.00 a gallon. The materials price variance was $80,000;favorable. What is the standard price;per gallon?;a. $2;b. $5;c. $7;d. $9;121. All;Urban Company produces a product requiring 4 pounds of material costing $3.50 per;pound. During December, All Urban purchased 4,200 pounds of material for $14,112;and used the material to produce 500 products. What was the materials price;variance for December?;a. $560;F;b. $588;F;c. $112;U;d. $672;U;122. Shipp;Inc. manufactures a product requiring two pounds of direct material. During 2013;Shipp purchases 24,000 pounds of material for $99,200 when the standard price;per pound is $4. During 2013, Shipp uses 22,000 pounds to make 12,000 products.;The standard direct material cost per unit of finished product is;a. $8.27.;b. $9.01.;c. $8.00.;d. $8.53.;123. Clark;Company manufactures a product with a standard direct labor cost of two hours;at $18.00 per hour. During July, 2,000 units were produced using 4,200 hours at;$18.30 per hour. The labor quantity variance was;a. $3,660;F.;b. $3,600;U.;c. $2,460;U.;d. $3,660;U.;124. Clark;Company manufactures a product with a standard direct labor cost of two hours;at $18.00 per hour. During July, 2,000 units were produced using 4,200 hours at;$18.30 per hour. The labor price variance was;a. $1,260;U.;b. $4,860;U.;c. $4,860;F.;d. $3,600;U.;125. A;company developed the following per unit materials standards for its;product: 3 pounds of direct materials at;$5 per pound. If 12,000 units of product were produced last month and 37,500;pounds of direct materials were used, the direct materials quantity variance;was;a. $4,500;favorable.;b. $7,500;unfavorable.;c. $4,500;unfavorable.;d. $7,500;favorable.;126. The standard direct labor cost for;producing one unit of product is 5 direct labor hours at a standard rate of pay;of $20. Last month, 15,000 units were produced and 73,500 direct labor hours;were actually worked at a total cost of $1,350,000. The direct labor quantity;variance was;a. $30,000;unfavorable.;b. $45,000;unfavorable.;c. $45,000;favorable.;d. $30,000;favorable.;127. Atkins;Inc. produces a product requiring 8 pounds of material at $1.50 per pound. Atkins;produced 10,000 units of this product during 2013 resulting in a $30,000;unfavorable materials quantity variance. How many pounds of direct material did;Atkins use during 2013?;a. 100,000;pounds;b. 80,000;pounds;c. 160,000;pounds;d. 125,000;pounds;128. Dillon has a standard of 1.5 pounds of;materials per unit, at $6 per pound. In producing 2,000 units, Dillon used;3,100 pounds of materials at a total cost of $18,135. Dillon's total variance;is;a. $450;F.;b. $135;U.;c. $465;U.;d. $600;U.;129. Dillon has a standard of 1.5 pounds of;materials per unit, at $6 per pound. In producing 2,000 units, Dillon used;3,100 pounds of materials at a total cost of $18,135. Dillon's materials price;variance is;a. $135;U.;b. $465;F.;c. $600;F.;d. $1,050;F.;130. Dillon has a standard of 1.5 pounds of;materials per unit, at $6 per pound. In producing 2,000 units, Dillon used;3,100 pounds of materials at a total cost of $18,135. Dillon's materials;quantity variance is;a. $135;F.;b. $465;U.;c. $600;U.;d. $1,050;U.;131. Dillon has a standard of 2 hours of labor;per unit, at $12 per hour. In producing 2,000 units, Dillon used 3,850 hours of;labor at a total cost of $46,970. Dillon's total labor variance is;a. $1,030;U.;b. $800;U.;c. $-1,030;F.;d. $1,930;F.;132. Dillon has a standard of 2 hours of labor;per unit, at $12 per hour. In producing 2,000 units, Dillon used 3,850 hours of;labor at a total cost of $46,970. Dillon's labor price variance is;a. $770;U.;b. $800;U.;c. $1,030;F.;d. $1,930;F.;133. Dillon has a standard of 2 hours of labor;per unit, at $12 per hour. In producing 2,000 units, Dillon used 3,850 hours of;labor at a total cost of $46,970. Dillon's labor quantity variance is;a. $770;U.;b. $770;F.;c. $1,800;F.;d. $1,930;F.;134. Which one of the following describes the total overhead variance?;a. The;difference between what was actually incurred and the flexible budget amount;b. The;difference between what was actually incurred and overhead applied;c. The;difference between the overhead applied and the flexible budget amount;d. The;difference between what was actually incurred and the total;production budget;135. Manufacturing;overhead costs are applied to work in process on the basis of;a. actual;hours worked.;b. standard;hours allowed.;c. ratio;of actual variable to fixed costs.;d. actual;overhead costs incurred.;136. The;total overhead;varianceis the difference between the;a. actual;overhead costs and overhead costs applied based on standard hours allowed.;b. actual;overhead costs and overhead costs applied based on actual hours.;c. overhead;costs applied based on actual hoursand;overhead costs applied based on standard hours;allowed.;d. the;actual overhead costs and the standard;direct labor costs.;137. The predetermined overhead rate for Zane;Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of;$2. The amount of budgeted overhead costs at normal capacity of $150,000 was;divided by normal capacity of 30,000 direct labor hours, to arrive at the;predetermined overhead rate of $5. Actual overhead for June was $9,500 variable;and $6,050 fixed, and standard hours allowed for the product produced in June;was 3,000 hours. The total overhead;variance is;a. $3,050;F.;b. $550;F.;c. $550;U.;d. $3,050;U.;138. The predetermined;overhead rate for Zane Company is $5, comprised of a variable overhead rate of;$3 and a fixed rate of $2. The amount of budgeted overhead costs at normal;capacity of $150,000 was divided by normal capacity of 30,000 direct labor;hours, to arrive at the predetermined overhead rate of $5. Actual overhead for;June was $8,900 variable and $5,400 fixed, and 1,500 units were produced. The;direct labor standard is 2 hours per unit produced. The total overhead variance is;a. $1,800;F.;b. $700;F.;c. $700;U.;d. $1,800;U.;139. Which of the following;is true?;a. The form, content, and frequency of variance;reports vary considerably among companies.;b. The form, content;and frequency of variance reports do not vary among companies.;c. The;form and content of variance reports vary considerably among companies, but the;frequency is always weekly.;d. The;form and content of variance reports are consistent among companies, but the;frequency varies.;140. Denmark Corporation?s variance report for;the purchasing department reports 1,000 units of material A purchased and 2,400;units of material B purchased. It also reports standard prices of $2 for;Material A and $3 for Material B. Actual prices reported are $2.10 for Material;A and $2.80 for Material B. Denmark should report a total price variance of;a. $380;F.;b. $340;F.;c. $340;U.;d. $380;U.

 

Paper#41721 | Written in 18-Jul-2015

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