Reference no: EM132204999
Questions -
Q1. The following materials standards have been established for a particular product:
Standard quantity per unit of output 4.4 pounds
Standard price $13.20 per pound
The following data pertain to operations concerning the product for the last month:
Actual materials purchased 4,800 pounds
Actual cost of materials purchased $62,880
Actual materials used in production 4,800 Pounds
Actual output 700 units
The direct materials purchases variance is computed when the materials are purchased.
What is the materials price variance for the month?
Q2. The following labor standards have been established for a particular product:
Standard labor-hours per unit of output 9.1hours
Standard labor rate $17.10per hour
The following data pertain to operations concerning the product for the last month:
Actual hours worked 10,100hours
Actual total labor cost $169,680
Actual output 1,000units
What is the labor rate variance for the month?
Q3. Dallas Snow Removal's cost formula for its vehicle operating cost is $2,060 per month plus $306 per snow-day. For the month of January, the company planned for of 16 snow-days, but the actual level of activity was 18 snow-days. The actual vehicle operating cost for the month was $7,720. The vehicle operating cost in the static or planning budget for January would be closest to:
Q4. College Hospital bases its budgets on patient-visits. The hospital's static or planning budget for August appears below:
Budgeted number of patient-visits 9,300
Budgeted variable costs:
Supplies (@$9.40 per patient-visit) $87,420
Laundry (@$9.10 per patient-visit) 84,630
Total variable cost 172,050
Budgeted fixed costs:
Wages and salaries 99,730
Occupancy costs 107,730
Total fixed cost 207,460
Total cost $379,510
The total variable cost at the activity level of 9,400 patient-visits per month should be:
Q5. A budget that is based on the actual activity of a period is known as a:
- master budget.
- static budget.
- continuous budget.
- flexible budget.
Q6. The following standards have been established for a raw material used to make product O84:
Standard quantity of the material per unit of output 7.2meters
Standard price of the material $18.00per meter
The following data pertain to a recent month's operations:
Actual material purchased 3,500 meters
Actual cost of material purchased $66,150
Actual material used in production 3,200 meters
Actual output 510units of product O84
The direct materials purchases variance is computed when the materials are purchased.
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?
(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
a. Materials price variance not attempted
b. Materials quantity variance?