1. Natalie received a report from the production and purchasing departments with

Question

1. Natalie received a report from the production and purchasing departments with the following values for October:

Actual materials quantity: 18,000 pounds
Total actual cost: $8,700
Standard materials quantity: 1.05 pounds/unit
Standard price: $0.50/pound
Units made: 16,000

Four days later, Natalie received a correction from the production department that they found an error in their calculations, and they actually only used 17,800 pounds of raw materials. How much would Natalie’s materials quantity variance change for the month of October?

A : $500 U

B : $100 F

C : $100 U

D : $500 F

2. JQ’s Pizza manufactures deluxe frozen pizzas. As a company accountant, you have compiled the following information to track standard costs:

A : $1.80

B : $2.10

C : $5.10

D : $3.27

Expected Year 2Actual Year 1 Total manufacturing overhead Variable overhead as % of direct labor cost Direct labor cost $1,779,260 /(3%, $994,000 $1,650,000 60% $859,375

Explanation / Answer

1) Material quantity variance = (Standard quantity-actual quantity) Standard price

= (16000*1.05-17800)*0.50

Material quantity variance = 500 U

So answer is a) $500 U

2) Budgeted pizza = 994000/3 = 331333 pizzas

Standard fixed overhead = 1779260-(994000*70%) = 1083460

Standard fixed overhead cost per pizza = 1083460/331333 = $3.27

So answer is d) $3.27

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.