7. The Porter Company has a standard cost system. In July the company purchased and used 22,500 pounds of direct material at an actual cost of $53,000; the materials quantity variance was $1,875 Unfavorable; and the standard quantity of materials allowed for July production was 21,750 pounds. The materials price variance for July was: A. $2,725 F. B. $2,725 U. C. $3,250 F. D. $3,250 U.
8. Cox Company's direct material costs for the month of January were as follows: Actual quantity purchased 18,000 kilograms Actual unit purchase price $ 3.60 per kilogram Materials price variance –unfavorable (based on purchases) $ 3,600 Standard quantity allowed for actual production 16,000 kilograms Actual quantity used 15,000 kilograms For January there was a favorable direct material quantity variance of
9. JKL Company has a standard of 15 parts of component X costing P1.50 each. JKL purchased 14,910 units of component X for P22,145. JKL generated a P220 favorable price variance and a P3,735 favorable quantity variance. If there were no changes in the component inventory, how many units of finished product were produced?
10. The following direct labor information pertains to the manufacture of product Glu: Time required to make one unit 2 direct labor hours Number of direct workers 50 Number of productive hours per week, per worker 40 Weekly wages per worker $500 Workers’ benefits treated as direct labor costs20% of wages What is the standard direct labor cost per unit of product Glu?
11. ACE Company’s operations for the month just ended originally set up a 60,000 direct labor hour level, with budgeted direct labor of P960,000 and budgeted variable overhead of P240,000. The actual results revealed that direct labor incurred amounted to P1,148,000 and that the unfavorable variable overhead variance was P40,000. Labor trouble caused an unfavorable labor efficiency variance of P120,000, and new employees hired at higher rates resulted in an actual average wage rate of P16.40 per hour. The total number of standard direct labor hours allowed for the actual units produced is A. P52,500 B. P60,000 C. P62,500 D. P70,000
12. Pane Company's direct labor costs for April are as follows: Standard direct labor hours 42,000 Actual direct labor hours 41,200 Total direct labor payroll $247,200 Direct labor efficiency variance –favorable $3,840 What is Pane's direct labor rate variance?