Materials quantity variance for march
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1. Landram Corporation makes a product with the following standard costs:
|
Inputs |
Standard Quantity or Hours |
Standard Price or Rate |
|
Direct materials |
2.0 kilos |
$7.00 per kilo |
|
Direct labor |
1.6 hours |
$14.00 per hour |
|
Variable overhead |
1.6 hours |
$2.00 per hour |
In March the company produced 4,600 units using 10,220 kilos of the direct material and 2,200 direct labor-hours. During the month, the company purchased 10,790 kilos of the direct material at a cost of $76,670. The actual direct labor cost was $38,246 and the actual variable overhead cost was $11,947.
The company applies variable overhead on the basis of direct labor-hours. The direct materials price variance is computed when the materials are purchased.
The materials quantity variance for March is:
A. $7,140 U
B. $7,248 U
C. $7,140 F
D. $7,248 F
2. Hurren Corporation makes a product with the following standard costs:
|
Inputs |
Standard Quantity or Hours |
Standard Price or Rate |
Standard Cost Per Unit |
|
Direct materials |
4.8 grams |
$7.00 per gram |
$33.60 |
|
Direct labor |
0.8 hours |
$13.00 per hour |
$10.40 |
|
Variable overhead |
0.8 hours |
$8.00 per hour |
$6.40 |
The company reported the following results concerning this product in June.
|
Originally budgeted output |
6,200 |
units |
|
Actual output |
6,100 |
units |
|
Raw materials used in production |
28,420 |
grams |
|
Actual direct labor-hours |
4,800 |
hours |
|
Purchases of raw materials |
32,200 |
grams |
|
Actual price of raw materials purchased |
$7.10 |
per gram |
|
Actual direct labor rate |
$13.90 |
per hour |
|
Actual variable overhead rate |
$7.70 |
per hour |
The company applies variable overhead on the basis of direct labor-hours. The direct materials price variance is computed when the materials are purchased.
The labor rate variance for June is: (Round your intermediate calculations to 2 decimal places.)
A. $4,392 F
B. $4,320 F
C. $4,392 U
D. $4,320 U
3. Landram Corporation makes a product with the following standard costs:
|
Inputs |
Standard Quantity or Hours |
Standard Price or Rate |
|
Direct materials |
2.0 kilos |
$7.00 per kilo |
|
Direct labor |
1.0 hours |
$14.00 per hour |
|
Variable overhead |
1.0 hours |
$6.00 per hour |
In March the company produced 4,700 units using 10,280 kilos of the direct material and 2,260 direct labor-hours. During the month, the company purchased 10,850 kilos of the direct material at a cost of $76,730. The actual direct labor cost was $38,238 and the actual variable overhead cost was $11,939.
The company applies variable overhead on the basis of direct labor-hours. The direct materials price variance is computed when the materials are purchased.
The materials price variance for March is: (Do not round intermediate calculations.)
A. $640 U
B. $780 F
C. $780 U
D. $640 F
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Rating:
/5
