9. The standard cost card for one unit of a finished product shows the following

Question

9. The standard cost card for one unit of a finished product shows the following Standard Quantity or Hours 12 feet .5 hours 1.5 hours Standard Price or Rate $? per foot $12 per hour $8 per hour Direct materials. Direct labor Variable manufacturing overhead.. If the total standard variable cost for one unit of finished product is $78, then the standard price per foot for direct materials is: A) $2 B) $3 C) $4 D) S5 10. Suver Corporation has a standard costing system. The following data are available for June: Actual quantity of direct materials purchased... 24,000 pounds Standard price of direct materials. $6.00 per pound $6,000 Unfavorable $2.400 Favorable Material price variance. Material quantity variance The actual price per pound of direct materials purchased in June was: A) $6.10 per pound B) $5.90 per pound C) $6.40 per pound D) $6.30 per pound 11. Bailey Corporation manufactures orange safety suits for road workers. The following information relates to the corporation's purchases and use of material for April 12,000 yards 10,000 yards 10,800 yards Material purchased Material used in production. Standard material allowed for suits produced The company's materials price variance for April was $3,000 Favorable. Its materials quantity variance for April was $5.000 Favorable. What does the company use as a standard price per yard of material for its safety suits? A) $5.75 per yard B) $6.50 per yard C) $6.25 per yard D) $6.00 per yard

Explanation / Answer

9 Standard Quantity Price Amount Direct material 12 4 48 (78-18-12=48) Direct labor 1.5 12 18 Variable manufacturing overeheads 1.5 8 12 78 Price = 48/12 = $4 So correct answer is C 10 Direct material price variance = (Actual rate - Standard rate) * actual quantity 6000 =( Actual rate - 6 ) * 24000 Actual rate 6.25 11 Standard Material for actual production 10,800 Yards Direct material quantity variance=   (Standard material for acual production - Actual material) *Standard rate 5000 =(10800 - 10000)* standard price Standard price 6.25 Per yard Correct answer is C

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