1) Company utilizes 40,000 gallons of materials for which it paid $9.00 gallon. Materials price variance was $80,000 favourable. Determine the standard price per gallon?
a) $2.00
b) $7.00
c) $10.00
d) $11.00
e) None of the above
2) Pine Company manufactured 96,000 units in 45,000 direct labour hours. Production for period was budgeted at 99,000 units and 45,500 direct labour hours. Flexible budget would compare budget and actual, respectively at:
a) 48,000 hours and 49,500 hours.
b) 49,500 hours and 45,000 hours.
c) 48,000 hours and 45,000 hours.
d) 45,000 hours and 45,000 hours.
3) Unfavourable materials quantity variance would happen if
a) Actual labour hours used were greater than standard labour hours allowed.
b) Actual pounds of materials used were less than standard pounds allowed.
c) more materials are bought than are utilized.
d) Actual pounds of materials utilized were greater than standard pounds allowed.