11. The labor rate variance is computed by A) (Actual Rate x Actual Hours) - (St
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11. The labor rate variance is computed by A) (Actual Rate x Actual Hours) - (Standard Rate x Standard Hours). B) (Standard Rate x Actual Rate) - (Actual Rate x Actual Hours). C) (Actual Rate x Standard Hours) - (Standard Rate x Actual Hours). D) (Actual Rate x Actual Hours) - (Standard Rate x Actual Hours). E) none of these. 12. All of the following are true except A) A favorable labor efficiency variance could result from using higher quality materials that result in fewer inspections. B) A favorable labor rate variance could result from lower wage workers quitting. C) A favorable materials price variance could result from purchasing identical materials from another supplier at a lower price. D) An unfavorable materials usage variance could result from not efficiently utilizing raw materials, thus causing waste. E) An unfavorable labor efficiency variance can be caused by machine downtime, and poor quality materials. 13. During September, 40,000 units were produced. The standard quantity of material allowed per unit was 5 pounds at a standard cost of $2.50 per pound. If there was a favorable usage variance of $25,000 for September, the actual quantity of materials used must have been A) 210,000 pounds. B) 190,000 pounds. C) 105,000 pounds. D) 95,000 pounds. 14. Roberts Company uses a standard costing system. The following information pertains to direct materials for the July:Standard price per lb. $18.00Actual purchase price per lb. $16.50Quantity purchased 3,100 lbs.Quantity used 2,950 lbs.Standard quantity allowed for actual output 3,000 lbs.Actual output 1,000 unitsRoberts Company reports its material price variances at the time of purchase. What is the material usage variance for Roberts Company? A) $900 F B) $1,950 F C) $2,850 F D) $900 U 15. Perfect Builders makes all sorts of moldings. Its standard quantity of material allowed is 1 foot of wood per 1 foot of molding at a standard price of $2.00 per foot. During August, it purchased 500,000 feet of wood at a cost of $1.90 per foot, which produced only 499,000 feet of molding. Calculate the materials price variance and the materials usage variance, respectively. A) $50,000 F and $2,000 U B) $49,900 U and $2,000 F C) $50,000 F and $1,900 U D) $49,900 F and $1,900 U Thank you so much for helpingExplanation / Answer
11. The labor rate variance is computed by D) (Actual Rate x Actual Hours) - (Standard Rate x Actual Hours). 12. All of the following are true except B) A favorable labor rate variance could result from lower wage workers quitting. 13. During September, 40,000 units were produced. The standard quantity of material allowed per unit was 5 pounds at a standard cost of $2.50 per pound. If there was a favorable usage variance of $25,000 for September, the actual quantity of materials used must have been [Materials quantity variance = (Actual quantity used × Standard price) - (Standard quantity allowed × Standard Price)] ie 25000 = AQ*$2.50 - 40000*5*$2.50 So AQ = (25000+40000*5*2.50)/2.50 = 210,000 Lbs A) 210,000 pounds. 14. Roberts Company uses a standard costing system. The following information pertains to direct materials for the July:Standard price per lb $18.00. Actual purchase price per lb. $16.50. Quantity purchased 3,100 lbs. Quantity used 2,950 lbs. Standard quantity allowed for actual output 3,000 lbs. Actual output 1,000 units. Roberts Company reports its material price variances at the time of purchase. What is the material usage variance for Roberts Company? [Materials quantity variance = (Actual quantity used × Standard price) - (Standard quantity allowed × Standard Price)] ie MQV = (2950*$18) - (3000*$18) = $900F A) $900 F
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