1. Landram Corporation makes a product with the following standard costs:
|
Inputs
|
Standard Quantity or Hours
|
Standard Price or Rate
|
|
Direct materials
|
2.0 kilos
|
$7.00 per kilo
|
|
Direct labor
|
1.6 hours
|
$14.00 per hour
|
|
Variable overhead
|
1.6 hours
|
$2.00 per hour
|
In March the company produced 4,600 units using 10,220 kilos of the direct material and 2,200 direct labor-hours. During the month, the company purchased 10,790 kilos of the direct material at a cost of $76,670. The actual direct labor cost was $38,246 and the actual variable overhead cost was $11,947.
The company applies variable overhead on the basis of direct labor-hours. The direct materials price variance is computed when the materials are purchased.
The materials quantity variance for March is:
A. $7,140 U
B. $7,248 U
C. $7,140 F
D. $7,248 F
2. Hurren Corporation makes a product with the following standard costs:
|
Inputs
|
Standard Quantity or Hours
|
Standard Price or Rate
|
Standard Cost Per Unit
|
|
Direct materials
|
4.8 grams
|
$7.00 per gram
|
$33.60
|
|
Direct labor
|
0.8 hours
|
$13.00 per hour
|
$10.40
|
|
Variable overhead
|
0.8 hours
|
$8.00 per hour
|
$6.40
|
The company reported the following results concerning this product in June.
|
Originally budgeted output
|
6,200
|
units
|
|
Actual output
|
6,100
|
units
|
|
Raw materials used in production
|
28,420
|
grams
|
|
Actual direct labor-hours
|
4,800
|
hours
|
|
Purchases of raw materials
|
32,200
|
grams
|
|
Actual price of raw materials purchased
|
$7.10
|
per gram
|
|
Actual direct labor rate
|
$13.90
|
per hour
|
|
Actual variable overhead rate
|
$7.70
|
per hour
|
The company applies variable overhead on the basis of direct labor-hours. The direct materials price variance is computed when the materials are purchased.
The labor rate variance for June is: (Round your intermediate calculations to 2 decimal places.)
A. $4,392 F
B. $4,320 F
C. $4,392 U
D. $4,320 U
3. Landram Corporation makes a product with the following standard costs:
|
Inputs
|
Standard Quantity or Hours
|
Standard Price or Rate
|
|
Direct materials
|
2.0 kilos
|
$7.00 per kilo
|
|
Direct labor
|
1.0 hours
|
$14.00 per hour
|
|
Variable overhead
|
1.0 hours
|
$6.00 per hour
|
In March the company produced 4,700 units using 10,280 kilos of the direct material and 2,260 direct labor-hours. During the month, the company purchased 10,850 kilos of the direct material at a cost of $76,730. The actual direct labor cost was $38,238 and the actual variable overhead cost was $11,939.
The company applies variable overhead on the basis of direct labor-hours. The direct materials price variance is computed when the materials are purchased.
The materials price variance for March is: (Do not round intermediate calculations.)
A. $640 U
B. $780 F
C. $780 U
D. $640 F