1.

A manufacturing company would include setup and downtime in their direct

a. materials price standard.
b. materials quantity standard.
c. labor price standard.
d. labor quantity standard.

2.Allowance for spoilage is part of the direct
a. materials price standard.
b. materials quantity standard.
c. labor price standard.
d. labor quantity standard.

3. The total standard cost to produce one unit of product is shown
a. at the bottom of the income statement.
b. at the bottom of the balance sheet.
c. on the standard cost card.
d. in the Work in Process Inventory account.

4.An unfavorable materials quantity variance would occur if
a. more materials are purchased than are used.
b. actual pounds of materials used were less than the standard pounds allowed.
c. actual labor hours used were greater than the standard labor hours allowed.
d. actual pounds of materials used were greater than the standard pounds allowed.

5.If actual direct material costss are greater than standard direct materials costs, it means that
a. actual costs were calculated incorrectly.
b. the actual unit price of direct materials was greater than the standard unit price of
direct materials.
c. the actual unit price of raw materials or the actual quantities of raw materials used was
greater than the standard unit price or standard quantities of raw materials expected.
d. the purchasing agent or the production foreman is inefficient.

Computation

1.A company developed the following per-unit standards for its product: 2 pounds of direct
materials at $6 per pound. Last month, 1,000 pounds of direct materials were purchased
for $5,700. The direct materials price variance for last month was
a. $5,700 favorable.
b. $300 favorable.
c. $150 favorable.
d. $300 unfavorable.

2. The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month,
5,600 gallons of direct materials that actually cost $21,200 were used to produce 3,000
units of product. The direct materials quantity variance for last month was
a. $1,600 favorable.
b. $1,200 favorable.
c. $1,600 unfavorable.
d. $2,800 unfavorable.
3. The per-unit standards for direct labor are 2 direct labor hours at $12 per hour. If in
producing 1,200 units, the actual direct labor cost was $25,600 for 2,000 direct labor
hours worked, the total direct labor variance is
a. $960 unfavorable.
b. $3,200 favorable.
c. $2,000 unfavorable.
d. $3,200 unfavorable.

4. The standard rate of pay is $10 per direct labor hour. If the actual direct labor payroll
was $39,200 for 4,000 direct labor hours worked, the direct labor price (rate) variance is
a. $800 unfavorable.
b. $800 favorable.
c. $1,000 unfavorable.
d. $1,000 favorable.

5. The standard number of hours that should have been worked for the output attained is
8,000 direct labor hours and the actual number of direct labor hours worked was 8,400.
If the direct labor price variance was $4,200 unfavorable, and the standard rate of pay
was $9 per direct labor hour, what was the actual rate of pay for direct labor?
a. $8.50 per direct labor hour
b. $7.50 per direct labor hour
c. $9.50 per direct labor hour
d. $9.00 per direct labor hour



Marielle Jane Curioso
Vanessa Tapia
Jovie Rebucas
Krystel Gayle Ignacio
Mobarac Tando