Question

1) The total manufacturing cost variance consists of 

a. direct materials price variance, direct labor cost variance, and fixed factory overhead volume 

b. direct materials cost variance, direct labor cost variance, and variable factory overhead 

c. direct materials cost variance, direct labor rate variance, and factory overhead cost variance variance controllable variance 

d. direct materials cost variance, direct labor cost variance, and factory overhead cost variance

2)

Overhead is applied on standard labor hours. 

The direct materials quantity variance is 

a. 22,800 favorable b. 52,000 unfavorable c. 52,000 favorable d. 22,800 unfavorable

3)

The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are 

The amount of direct materials price variance is 

a. $2,750 favorable variance b. $2,750 unfavorable variance c.$1,500 unfavorable variance d. $1,500 favorable variance

4)

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $4.50; and standard costs for 4,800 pounds of material at $5.10 per pound 

What is the direct materials quantity variance? 

a. $900 favorable b. $900 unfavorable c-$1,020 favorable d. $1,020 unfavorable

5)

The following data relate to direct labor costs for the current period: 

Standard costs  6,000 hours at $12.00

Actual costs  7,500 hours at $11.40 

What is the direct labor rate variance? 

a. $3,600 favorable b. $4,500 favorable c. $17,100 unfavorable d. $18,000 unfavorable

Answer 1

Solution 1:

The total manufacturing cost variance consist of "Direct material cost variance, Direct labor cost variance and factory overhead cost variance"

Hence option d is correct.

solution 2:

Direct material quantity variance = (SQ - AQ) * SP = (27500*8 - 228000)*$6.50 = $52,000 Unfavorable

Hence option b is correct.

Solution 3:

Direct material price variance = (SP - AP) * AQ = ($8.75 - $8) * 2000 = $1,500 Favorable

Hence option d is correct.

Solution 4:

Direct material quantity variance = (SQ - AQ) * SP = (4800 - 5000)*$5.10 = $1,020 Unfavorable

Hence option d is correct.

Solution 5:

Direct labor rate variance = (SR - AR) * AH = ($12 - $11.40) * 7500 = $4,500 Favorable

Hence option b is correct.