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.
