Chapter 9 - Chapter 8- Sue Kattelus Use the following...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 8- Sue Kattelus Use the following information for questions 1-5: Ravena Labs Inc. makes a single product which has the following standards: Variable manufacturing overhead is applied on the basis of direct labor hours. The following data are available for October: - 3,750 units of compound were produced during the month. - There was no beginning direct materials inventory. - The ending direct materials inventory was 2,000 ounces. - Direct materials purchased: 12,000 ounces for $225,000. - Direct labor hours worked: 5,600 hours at a cost of $67,200. - Variable manufacturing overhead costs incurred amounted to $18,200. - Variable manufacturing overhead applied to products: $18,375. 1. The direct materials price variance for October is: A. $15,000 unfavorable B. $15,000 favorable C. $25,000 unfavorable D. $25,000 favorable 2. The direct materials quantity variance for October is: A. $52,500 unfavorable B. $52,500 favorable C. $12,500 unfavorable D. $12,500 favorable 3. The direct labor efficiency variance for October is: A. $1,400 favorable B. $1,900 unfavorable C. $3,750 favorable D. $4,375 unfavorable 4. The variable overhead spending variance for October is: A. $1,400 favorable B. $1,900 unfavorable C. $3,750 favorable D. $4,375 unfavorable
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
5. The variable overhead efficiency variance for October is: A. $1,400 favorable B. $1,225 unfavorable C. $1,900 unfavorable D. $2,700 favorable Use the following information for questions 6-11: Beakins Company produces a single product. The standard cost card for the product follows: The company records all variances at the earliest possible point in time. Variable manufacturing overhead costs are applied to products on the basis of direct labor hours. 6. The materials price variance for the period is:
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 8

Chapter 9 - Chapter 8- Sue Kattelus Use the following...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online