Quiz 9

1. A credit balance in the material price variance indicates that

a. Actual price exceeds standard price c. Actual quantity exceeds standard quantity
b. Standard price exceeds actual price d. Standard quantity exceeds actual quantity

2. Roach Company manufactures tables with glass tops. The standard material cost for the glass
used per Type- R table is P 7.80 based on six square-feet of vinyl at a cost of P 1.30 per
square-foot. A production run of 1,000 tables in 2008 resulted to usage of 6,400 square-feet
of vinyl at a cost of P 1.20 per square-foot, a total of P 7,680. The materials usage variance
resulting from the above production run was
a. P 120 favorable c. P 520 unfavorable
b. P 480 favorable d. P 640 favorable

3. A company uses a standard costs system to account for its only product. The materials
standard per unit was 4 pounds at P 5.10 per pound. Operating data for April were as follows:
Materials used 7,800 lbs
Cost of materials used P 40,950
Number of finished unit 2,000
What was the materials usage variance for April?

4. A credit balance in the material price variance indicates that

c. Actual price exceeds standard price c. Actual quantity exceeds standard quantity
d. Standard price exceeds actual price d. Standard quantity exceeds actual quantity

5. Roach Company manufactures tables with glass tops. The standard material cost for the glass
used per Type- R table is P 7.80 based on six square-feet of vinyl at a cost of P 1.30 per
square-foot. A production run of 1,000 tables in 2008 resulted to usage of 6,400 square-feet
of vinyl at a cost of P 1.20 per square-foot, a total of P 7,680. The materials usage variance
resulting from the above production run was
c. P 120 favorable c. P 520 unfavorable
d. P 480 favorable d. P 640 favorable

6. A company uses a standard costs system to account for its only product. The materials
standard per unit was 4 pounds at P 5.10 per pound. Operating data for April were as follows:
Materials used 7,800 lbs
Cost of materials used P 40,950
Number of finished unit 2,000
What was the materials usage variance for April?