Chapter 11 Graded Quiz Blank

Chapter 11 Graded Quiz Blank - 1 A favorable materials...

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1. A favorable materials price variance coupled with an unfavorable material usage variance would most likely result from: Answer: Reenu Company manufactures wigs out of used dental floss. The variable cost standards for wig production developed by Reenu are as follows: Standard quantity per wig standard cost per pound/hour Standard cost per wig Direct materials 3.00 pounds $3.80 $11.40 Direct labor 0.75 hours $12.00 $9.00 Variable overhead 0.75 hours $10.00 $7.50 Variable overhead at Reenu is based on direct labor-hours. The actual results for the month of October were as follows: Number of wigs produced 12,500 Direct labor-hours incurred 10,200 Pounds of direct materials purchased 42,000 Pounds of direct materials used in production 38,200 Cost of direct materials purchased $157,920 Direct labor cost $119,700 Variable overhead cost $98,600 2. What is Reenu's variable overhead rate variance for October? Answer:
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Chapter 11 Graded Quiz Blank - 1 A favorable materials...

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