Pre-Assignment Practice Chapter 10
1. The following materials standards have been established for a particular product:
Standard quantity per unit of output 4.6 grams
Standard price $ 15.05 per gram
The following data pertain to operations concerning the product for the last month:
Actual materials purchased 3,100 grams
Actual cost of materials purchased $ 44,020
Actual materials used in production 2,400 grams
Actual output 300 units
What is the materials quantity variance for the month?
○ $9,940 U
○ $15,351 U
○ $14,484 U
○ $10,535 U
2. Suver Corporation has a standard costing system. The following data are available for June:
Actual quantity of direct materials purchased 24,000 pounds
Standard price of direct materials $ 6.00 per pound
Material price variance $ 6,000 Unfavorable
Material quantity variance $ 2,400 Favorable
The actual price per pound of direct materials purchased in June was:
○ $6.10 per pound
○ $5.90 per pound
○ $6.25 per pound
○ $6.30 per pound
Pre-Assignment Practice Chapter 10
3. The following materials standards have been established for a particular product:
Standard quantity per unit of output 5.3 meters
Standard price $17.20 per meter
The following data pertain to operations concerning the product for the last month:
Actual materials purchased 8,100 meters
Actual cost of materials purchased $141,345
Actual materials used in production 7,600 meters
Actual output 1,400 units
What is the materials price variance for the month?
○ $3,141 U
○ $2,025 U
○ $8,600 U
○ $8,725 U
4. The following labor standards have been established for a particular product:
Standard labor-hours per unit of output 8.7 hours
Standard labor rate $18.10 per hour
The following data pertain to operations concerning the product for the last month:
Actual hours worked 3,800 hours
Actual total labor cost $67,640
Actual output 500 units
What is the labor efficiency variance for the month?
○ $9,790 F
○ $11,095 U
○ $9,955 F
○ $11,095 F
Pre-Assignment Practice Chapter 10
5. Mr. Fix It Company is an auto repair shop that uses standards to control its labor time and labor cost.
The standard labor cost for a brake repair job is given below:
Standard Hours Standard Rate Standard Cost
Brake Repair Job 2.50 $ 27.00 $ 67.50
The record showing the time spent in the shop last week on Brake repair jobs has been misplaced.
However, the shop supervisor recalls that 52 brake repair jobs were completed during the week, and
the controller recalls the following variance data relating to tune-ups:
Labor rate variance $ 150 F
Labor spending variance $ 174 U
Fill in the amounts for the following:
a. The actual labour rate: ___________________________________________
b. Total actual labour cost: ___________________________________________
c. The actual hours used: ___________________________________________
d. The standard cost allowed: ___________________________________________
e. The labour efficiency variance: ___________________________________________
Pre-Assignment Practice Chapter 10
6. Fortes Inc. has provided the following data concerning one of the products in its standard cost
system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.
Standard Quantity or Hours per Unit Standard Price or
Inputs of Output Rate
Direct materials 8.6 ounces $ 6.70 per ounce
Direct labor 0.5 hours $19.70 per hour
Variable manufacturing overhead 0.5 hours $ 5.00 per hour
The company has reported the following actual results for the product for April:
Actual output 6,200 units
Raw materials purchased 55,050 ounces
Actual cost of raw materials purchased $ 309,640
Raw materials used in production 53,350 ounces
Actual direct labor-hours 2,910 hours
Actual direct labor cost $ 60,700
Actual variable overhead cost $ 13,681
a. Compute the materials price variance for April. _____________________________
b. Compute the materials quantity variance for April. _____________________________
c. Compute the labor rate variance for April. _____________________________
d. Compute the labor efficiency variance for April. _____________________________
e. Compute the variable overhead rate variance for April. _____________________________
f. Compute the variable overhead efficiency variance for April. _____________________________
g. Total overall variance (tally of all variances combined) _____________________________
7. Thyne Incorporated has provided the following data concerning one of the products in its standard
cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-
Standard Quantity or Hours per Unit of
Inputs Output Standard Price or Rate
Direct materials 6.9 grams $ 9.20 per gram
Direct labor 0.90 hours $ 21.20 per hour
Variable manufacturing overhead 0.90 hours $ 3.60 per hour
hours.
The actual output for the period was 3,900 units.
The standard amount of materials allowed for the actual output is closest to:
○ 24,979 grams
○ 28,980 grams
○ 26,900 grams
○ 26,910 grams
Pre-Assignment Practice Chapter 10
8. The company has a standard cost system in which it applies overhead to this product based on
the standard machine-hours allowed for the actual output of the period. Data concerning the most
recent year appear below:
Budgeted fixed manufacturing overhead $ 233,940
Budgeted production (a) 35,000 units
Standard hours per unit (b) 1.20 machine-hours
Budgeted hours (a) × (b) 42,000 machine-hours
Actual production (a) 33,000 units
Standard hours per unit (b) 1.20 machine-hours
Standard hours allowed for the actual production (a) × (b) 39,600 machine-hours
Actual fixed manufacturing overhead $ 214,940
Actual hours 40,000 machine-hours
The fixed component of the predetermined overhead rate is closest to:
○ $5.43 per machine-hour
○ $5.57 per machine-hour
○ $6.51 per machine-hour
○ $6.68 per machine-hour
9. The company has a standard cost system in which it applies overhead to this product based on the
standard machine-hours allowed for the actual output of the period. Data concerning the most
recent year appear below:
Budgeted fixed manufacturing overhead $ 294,490
Budgeted production (a) 35,000 units
Standard hours per unit (b) 1.40 machine-hours
Budgeted hours (a) × (b) 49,000 machine-hours
Actual production (a) 30,000 units
Actual fixed manufacturing overhead $ 314,490
Actual hours 40,600 machine-hours
Calculate the following:
a. Standard Hours Allowed: _____________________________
b. Fixed POHR: _____________________________
c. Applied Fixed Manufacturing Overhead: _____________________________
d. Budget Variance: _____________________________
e. Volume Variance: _____________________________
Pre-Assignment Practice Chapter 10
10. Doogan Corporation makes a product with the following standard costs:
Standard Quantity or
Hours Standard Price or Rate
Direct materials 7.7 grams $ 2.30 per gram
Direct labor 0.5 hours $ 23.00 per hour
Variable overhead 0.5 hours $ 7.30 per hour
The company produced 5,500 units in January using 39,610 grams of direct material and 2,410
direct labor-hours. During the month, the company purchased 44,700 grams of the direct material at
$2.00 per gram. The actual direct labor rate was $22.30 per hour and the actual variable overhead
rate was $7.10 per hour.
The company applies variable overhead on the basis of direct labor-hours.
The variable overhead rate variance for January is:
○ $482 U
○ $550 F
○ $482 F
○ $550 U
11. The following were the manufacturing overhead variances for Sunshine Company:
Variable MOH Rate Variance 500 F
Variable MOH Efficiency Variance 1,250 U
Fixed MOH Budget Variance 200 U
Fixed MOH Volume Variance 17,300 F
What is the overall MOH Variance for Sunshine Company? ________________________________
Was overhead over or under applied? _________________________________________________
Pre-Assignment Practice Chapter 10
ANSWERS:
1. $15,351 U
2. $6.25 per pound
3. $2,025 U
4. $9,955 F
5.
a. $25.94
b. $3,684
c. 142
d. $3,510
e. $324 U
6.
a. $59,195 F
b. $201 U
c. $3,373 U
d. $3,743 F
e. $869 F
f. $950 F
g. $61,183 F
7. 26,910 grams
8. $5.57 per machine hour
9.
a. 42,000
b. $6.01
c. $252,420
d. $20,000 U
e. $42,070 U
10. $482 F
11. $16,350 Overapplied (F)
