1. Which of the following variances are most similar with respect to the manner in which they are calculated? A- Labor rate variance and labor efficiency variance. B- Material price variance and

1. Which of the following variances are most similar with respect to the manner in which they are calculated?

A- Labor rate variance and labor efficiency variance.

B- Material price variance and material quantity variance.

C- Material price variance, material quantity variance, and total material variance.

D- Material price variance and labor rate variance.

E- Material price variance and labor efficiency variance.

2.An unfavorable labor rate variance is created when:

A- actual labor hours worked exceed standard hours allowed.

B- actual hours worked are less than standard hours allowed.

C- actual wages paid are less than amounts that should have been paid.

D- actual units produced exceed budgeted production levels.

E- actual wages paid exceed amounts that should have been paid for the number of hours worked.

3. Dana, Inc. recently completed 56,000 units of a product that was expected to consume four pounds of direct material per finished unit. The standard price of the direct material was $8.50 per pound. If the firm purchased and consumed 228,000 pounds in manufacturing (cost = $1,881,000), the direct-material quantity variance would be:

A- $34,000U.

B- $34,000F.

C- $57,000U.

D- $57,000F.

E- None of these.

4.Direct material purchased and used, 80,000 gallons

Standard quantity of direct material allowed for May production, 76,000 gallons

Actual cost of direct materials purchased and used, $176,000

Unfavorable direct-material quantity variance, $9,400

The direct-material price variance is:

A- $11,400F.

B- $11,400U.

C- $12,000F.

D- $12,000U.

E- None of these.

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