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Unformatted text preview: 1) The following materials standards have been established for a particular product: Standard quantity per unit of output= 2.8 grams Standard price= $12.50 per gram The following data pertain to operations concerning the product for the last month: Actual material purchased= 6,200 grams Actual cost of materials purchased= $81,530 Actual materials used in production= 5,700 grams Actual output=1800 units What is the materials price variance for the month? $4,030 U 2) The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard quantity per unit of output= 5.2 hours Standard price= $14.10 per hour The following data pertain to operations last month: Actual hours= 6,400 hours Actual total variable overhead cost= $88,320 Actual output= 1,200 units What is the variable overhead spending variance for the month? $1,920 F 3) Grub Chemical Company has developed cost standards for the production of its new cologne, ChocO. The variable cost standards below relate to each 10 gallon batch of ChocO: Standard cost per batch: Milk chocolate (2 pounds@ $0.85 per pound) = $1.70 Direct labor (1.25 hours @ $12.00 per hour) =$15.00 Variable overhead (1.25 hours @ $44.00 per hour) = $55.00 Variable manufacturing overhead at Grub is applied based on direct labor hours. The actual results for the last month were as follows: Number of batches produced= 3,800 Direct labor hour incurred= 4,510 Pounds of chocolate purchased= 9,000 Pound of chocolate used in production=7,880 Cost of chocolate purchased=$7,200 Direct labor cost=$53,218 Variable manufacturing overhead cost=$205,700 What is ChocO's labor rate variance? (Favorable or unfavorable) $902 favorable 4) Buckler Company manufactures desks with vinyl tops. The standard material cost for the vinyl used per Model S desk is $27.00 based on 12 square feet of vinyl at a cost of $2.25 per square foot. A production run of 1,000 desks in March resulted in usage of 12,600 square feet of vinyl at a cost of $2.00 per square foot, a total cost of $25,200. The materials quantity variance resulting from the above production run was: (favorable or un favorable) $1,350 unfavorable 5) Kouri Corporation is developing standards for its products. One product requires an input that is purchased for $85.00 per kilogram from the supplier. By paying cash, the company gets a discount of 4% off this purchase price. Shipping costs from the supplier's warehouse amount to $4.62 per kilogram. Receiving costs are $0.55 per kilogram. Each unit of output of the product requires 0.74 kilogram of this input. The allowance for waste and spoilage is 0.03 kilogram of this input for each unit of output. The allowance for rejects is 0.13 kilogram of this input for each unit of output....
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- Spring '10