EXAM 2 PRACTICE DAVIS BOOK

EXAM 2 PRACTICE DAVIS BOOK - 1 If the labor efficiency...

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Unformatted text preview: 1. If the labor efficiency variance is unfavorable, then: A) actual hours exceeded standard hours allowed for the actual output. B) standard hours allowed for the actual output exceeded actual hours. C) the standard rate exceeded the actual rate. D) the actual rate exceeded the standard rate. Use the following to answer questions 2-6: Cox Engineering performs cement core tests in its laboratory. The following standards have been set for each core test performed: Standard Hours or Quantity Standard Price or Rate Direct materials...................................................................................................................... 3 pounds $0.75 per pound Direct labor............................................................................................................................ 0.4 hours $12 per hour Variable manufacturing overhead.......................................................................................... 0.4 hours $9 per hour During March, the laboratory performed 2,000 core tests. On March 1 no direct materials (sand) were on hand. Variable manufacturing overhead is assigned to core tests on the basis of direct labor hours. The following events occurred during March: • 8,600 pounds of sand were purchased and used at a cost of $7,310. • 840 actual direct labor hours were worked at a cost of $8,610. • Actual variable manufacturing overhead incurred was $3,200. 2.The materials price variance for March is: A) $860 unfavorable. B) $860 favorable. C) $281 unfavorable. D) $281 favorable. 3.The materials quantity variance for March is: A) $ 900 favorable. B) $1,950 favorable. C) $1,950 unfavorable. D) $ 900 unfavorable. 4.The labor rate variance for March is: A) $4,578 unfavorable. B) $1,470 unfavorable. C) $4,578 favorable. D) $1,470 favorable. 5.The labor efficiency variance for March is: A) $480 favorable. B) $480 unfavorable. C) $192 favorable. D) $192 unfavorable. 6.The variable overhead efficiency variance for March is: A) $320 unfavorable. B) $320 favorable. C) $360 unfavorable. D) $360 favorable. 1 7. The following materials standards have been established for a particular product: Standard quantity per unit of output...................................................................................... 4.6 grams Standard price........................................................................................................................ $15.05 Per gram The following data pertain to operations concerning the product for the last month: Actual materials purchased and used.....................................................................................Actual materials purchased and used....
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EXAM 2 PRACTICE DAVIS BOOK - 1 If the labor efficiency...

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