40. Acme has a standard of 15 parts of component X costing $1.50 each.

Acme purchased 14,910 units

of X for $21, 950. Acme generated a $415 favorable price variance and a $3,735 favorable quantity
variance. If there were no changes in the component inventory, how many units of finished product
were produced? (M) a. 994 units. c. 1,160 units. b. 1,000 units. d. Some other number. D, L & H 9e
Materials Price & Quantity Variances 44. If the current material standard calls for the use of 100,000
units at P1.00 each, but the actual usage was 105,000 units at P0.90 each, the variances to be explained
are (E) RPCPA 0596 a. b. c. d. Price Variance P10,000 fav P10,000 unfav P10,500 fav P10,500 unfav
Quantity Variance P 4,500 unfav P4,500 fav P5,000 unfav P5,000 fav 43 . A company producing a single
product employs the following direct material cost standard for each unit of output: 3 pounds of
material x $4/pound = $12/output unit Data regarding the operations for the current month are as
follows: Planned production 26,000 units Actual production 23,000 units Actual purchases of direct
materials (75,000 pounds) $297,000 Direct materials used in production 70,000 pounds What would be
the amount of the direct materials purchase price variance and direct materials quantity variance that
the company would recognize for the month?(E) CIA 1191 IV-16 Purchase Price Variance Quantity
Variance A. $3,120 favorable $32,000 favorable B. $3,000 favorable $24,000 unfavorable C. $3,000
favorable $4,000 unfavorable D. $2,800 favorable $4,000 unfavorable 37. Throop Company's standards
call for one kilogram of materials for each unit of output at a cost of $2 per kilogram for the raw
materials. Actual output was 50,000 units of product requiring 45,000 kilograms of raw materials at a
cost of $2.10 per kilogram. There were no beginning or ending inventories of raw materials. The direct
material price variance and quantity variance were: G & N 10e Price Quantity A. $ 4,500 unfavorable
$10,000 favorable B. $ 5,000 favorable $10,500 unfavorable C. $ 5,000 unfavorable $10,500 favorable D.
$10,000 favorable $ 4,500 unfavorable Questions 17 and 18 are based on the following information.
CMA 0695 3-23 & 24 Blaster Inc., a manufacturer of portable radios, purchases the components from
subcontractors to use to assemble into a complete radio. Each radio requires three units each of Part
XBEZ52 which has a standard cost of $1.45 per unit. During May 1995, Blaster experienced the following
with respect to Part XBEZ52. Units Purchases ($18,000) 12,000 Consumed in manufacturing 10,000
Radios manufactured 3,000 44 . During May 1995, Blaster Inc. incurred a purchase price variance of (E)
a. $450 unfavorable. c. $500 favorable. b. $450 favorable. d. $600 unfavorable. 45 . During May 1995,
Blaster Inc. incurred a materials price efficiency variance of (E) a. $1,450 unfavorable. c. $4,350
unfavorable. b. $1,450 favorable. d. $4,350 favorable. Questions 13 and 14 are based on the following
information. CIA 1192 IV-20 & 21 A manufacturer has the following direct materials standard for one of
its products. Direct materials: 3 pounds @ $1.60/pound = $4.80 The company records all inventory at
standard cost. Data for the current period regarding the manufacturer's budgeted and actual production
for the product as well as direct materials purchases and issues to production for manufacture of the
product are presented as follows. Budgeted production for the period 8,000 units CMA EXAMINATION
QUESTIONS Page 15 of 138MANAGEMENT ADVISORY SERVICES STANDARD COSTS AND VARIANCE
ANALYSIS Actual production for the period 7,500 units Direct materials purchases: Pounds purchased
25,000 pounds Total cost $38,750 Direct materials issued to production 23,000 pounds 46 . The direct
materials price variance for the current period is (E) A. $1,125 favorable. C. $1,200 favorable. B. $1,150
favorable. D. $1,250 favorable. 47 . The materials efficiency variance for the current period is (E) A. $775
unfavorable. C. $1,600 favorable. B. $800 unfavorable. D. $3,200 favorable.