Reference no: EM132591082

                                         Budget                  Actual

Units produced                        6,000               5,000

Material (in kg)                       6,000                 5,300

Material costs ($)                    192,000         See below

Direct Labour Costs (in $)          180,000               176,400

Direct Labour (in hours)                  9,000                 8,400

Variable Overhead (in $)                    90,000       100,000

Fixed Overhead (in $)                          144,000       135,000

Additional Information: Materials Purchased: 5,300 kg for $174,900

Material Inventory: Beginning = zero, Ending = 100kg

Question 1: Material Price Variance is closest to:

A. 2,200 U

B. 5,300 U

C. 5,300 F

D. 8,500 U

E. 8,500 F

Question 2: Material Quantity Variance is closest to:

A. 6,400 U

B. 6,400 F

C. 9,600 U

D. 9,600 F

E. 12,400 U

Question 3: Labour Rate variance is closest to:

A. 6,200 U

B. 6,200 F

C. 8,400 U

D. 8,400 F

E. 18,000 U

Question 4: Labour Efficiency variance is closest to:

A. 10,000 U

B. 12,000 U

C. 14,000 U

D. 16,000 U

E. 18,000 U

Question 5: Fixed overhead rate variance is closest to:

A. 9,000 F

B. 15,000 U

C. 15,000 F

D. 24,000 U

E. 24,000 F

Question 6: Fixed Overhead production volume variance is closest to:

A. 9,000 F

B. 15,000 U

C. 15,000 F

D. 24,000 U

E. 24,000 F