Chapter 16 fundamentals of variance analysis 61 what

16-13

Chapter 16 - Fundamentals of Variance Analysis
61. What is the direct materials price variance for November?
62. Is the direct materials price variance favorable or unfavorable?
63. What is the direct materials efficiency (quantity) variance for November?
64. Is the direct materials efficiency (quantity) variance favorable or unfavorable?
A. favorable
B. unfavorable
65. What is the direct labor price (rate) variance for November? 66. Is the direct labor price (rate) variance favorable or unfavorable?

Chapter 16 - Fundamentals of Variance Analysis
67. What is the direct labor efficiency variance for November?
68. Is the direct labor efficiency variance favorable or unfavorable?
A. favorable
B. unfavorable
The following information summarizes the standard cost for producing one metal tennis
racket frame. In addition, the variances for one month's production are given. Assume that all
inventory accounts have zero balances at the beginning of the month.
69. What were the actual direct labor hours worked during the month?
16-15

Chapter 16 - Fundamentals of Variance Analysis
70. What were the actual quantity of materials used during the month?
71. What was the actual price paid for the direct material during the month, assuming all
materials purchased were put into production?
Data on Goodman Company's direct-labor costs are given below:
72. What was Goodman's actual direct-labor rate?
A. $3.60
B. $3.80
C. $4.00
D. $5.80
73. What was Goodman's standard direct-labor rate?
16-16

Chapter 16 - Fundamentals of Variance Analysis
74. Blue Company produces Trivets. Based on its master budget, the company should produce
1,000 Trivets each month, working 2,500 direct labor hours. During May, only 900 Trivets
were produced. The company worked 2,400 direct labor hours. The standard hours allowed
for May production would be
Information on Barber Company's direct labor costs for the month of January is as follows:
75. What is Barber's direct labor price (rate) variance?
76. Is the direct labor price (rate) variance favorable or unfavorable?
A. favorable
B. unfavorable
16-17

Chapter 16 - Fundamentals of Variance Analysis