Question

The Koski Company has established standards as follows:

Direct material                                                     3 pounds @ P4/pound = P12 per unit

Direct labor                                                           2 hours @ P8/hour = P16 per unit

Variable overhead                                              2 hours @ P5/hour = $10 per unit

Actual production figures for the past year were as follows:

Units produced                                                                                    500

Direct material used                                                                           1,600 pounds

Direct material purchased (3,000 pounds)                                    $12,300

Direct labor cost (950 hours)                                                             $ 7,790

Variable overhead cost incurred                                                      $ 4,655
  

30. The materials price variance is:
    A. P160 U
    B. P6,300 U
    C. P300 U
    D. P150 U

31. The materials quantity variance is:
   A. P400 U
    B. P410 F
   C. P410 U
    D. P6,000 U

32. The labor efficiency variance is:
    A. P400 F
    B. P800 F
    C. P800 U
    D. P500 F

33. The variable overhead rate variance is:
    A. P345 F
   B. P95 F
    C. P655.50 F
    D. P345 U

Answer 1