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ACCT2301-002-Chap8-Additional-Solution-sp2009

ACCT2301-002-Chap8-Additional-Solution-sp2009 - ACCT 2301...

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Unformatted text preview: ACCT 2301 Spring Semester 2009 March 2, 2009 Practice Problems — Standard Costing/Variance Analysis 1. A favorable efficiency variance for direct manufacturing labor indicates that A a lower wage rate than planned was paid for direct labor. B a higher wage rate than planned was paid for direct labor. © less direct manufacturing labor-hours were used during production than planned for actual output. D more direct manufacturing labor-hours were used during production than planned for actual output. 2. An unfavorable price variance for direct materials might indicate that the purchasing manager purchased in smaller quantities due to a change to just-in-time inventory methods. that there was congestion in the finn’s main production process due to scheduling problems. that the purchasing manager skillfully negotiated a better purchase price. that the market had an unexpected oversupply of those materials. .009” 3. A favorable usage variance for direct materials might indicate ? that lower-quality materials were purchased. that skilled workers produced less scrap. C. relatively poor product or process design. D. that a lower-priced supplier was used. The following information pertains to Questions 4 through 7. Muleshoe Products developed stande costs for direct material and direct labor. In 2009, the firm estimated the following standard costs for one of their major products, the 30-gallon heavy-duty plastic container. Standard quantity Stande price Direct materials 0.20 pounds $25 per pound Direct labor 0.10 hours $15 per hour During January, Muleshoe purchased and used 2,200 pounds of material to produce 10,000 containers; the material cost an average $24 per pound. There were no beginning and ending materials inventories. In addition, 1,050 direct labor-hours were actually used to produce the 10,000 containers; the average actual wage rate for the month was $14.75 per hour. U 4. Muleshoe's direct material price variance in January was £33310: (”P’5P)AQ (”2'1 " 25) 2' 7'00 = *0) 1.22129 = (2100) $2,200 favorable. : $22.00 F B. $2,800 favorable. “ P (Tau. FWLLc' ’ C. $5,000 unfavorable. M 4 D. none of the above. 52300 55000 Sqa C 2am" 24 z 200*”); low», 0.10% 25 5. Muleshoe's direct material usage variance in January was PQ p 2200 F AmusP 5 u SQ'I-sf’ ; W“ A. $2,200 favorable. mm pm; Um M- V‘“ B. $2,800 unfavorable. © $5,000 unfavorable. D none of the above ERMA,- (AG—$12) SP: [2'1” " ('wa'q 2)] ’25 (2w,2m)‘zs 2a)» ‘zs = *Soao : “5.0mm ’— w 6. Muleshoe’s direct manufacturing labor rate variance in January was EQWDW.‘ AIL-SR F“=("H.1$~figaa I G) $262.50 favorable. ( ) I 3 .050 - H B. $487.50 favorable. ' “(O-‘5) >< 1,050 = (42.51:) C. $750.00 unfavorable. : J F D. none of the above. ' 2"? ' SD 7. Muleshoe’s direct labor efficiency variance in January was d A. $262.50 favorable. Em: (Al-\vSUfiSIL -. [1,050- Liza-29x QIQJ I5 B. $487.50 favorable. : ((050 ’ / aware”; C. $750.00 unfavorable. I ‘ ’ _ 6 :50 D. none of the above. ; a) x l5 , 7 = “799 u w 4 Pcrcvt 51—341. at a at /5,%‘I.SD $750.00 [$029.00 howl-“W r7: 1.050 His . Cleowtwn‘h >313 Am“; a: Amsk ‘ SIMS/2- 2(450 so bl M450”, (2m Vm Lam Effie UM... ...
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