Standard Costing

1213

26. What is the material price variance (calculated at point of purchased)?

C. P2.610F

a. P2,700U

b. P2,700 F

d. P2,610U

27. What is the material quantity variance?

a. P3,105F

b. P1,050F

C. P3,105U

d. P1,890U

28. What is the labor rate variance?

a. P3,480U

b. P3,480F

C. P2,800U

d. P2,800F

29.What is the labor efficiency variance?

a P1,875U

b. P938U

C. P1,875U

d. P1,125U

Items 30 to 34 are based on the following information:

McKinney Company has the following information available for October when 3,500 units were
produced (round answers to the nearest peso).

Standards:
Material

Labor

3.5 pounds per unit @ P4.50 per pound

5.0 hours per unit@P10.25 per hour

Actual: 12,300 pounds@P.425

Material purchased 11,750 pounds

Material used

17,300 direct labor hours @ P10.20 per hour

30. What is the labor rate variance?

a. P875F

b. P865 F

C. P865U

d. P875U

31. What is the labor efficiency variance?

a. P2,050 F

b. P2,050U

C. P2,040U

d. P2,040F

32. What is the material price variance (based on quantity purchased)?

C. P2,938F

a. P3,075 U

b. P2,938U

d. P3,075 F

33. What is the material quantity variance?

C. P2,938F
-a. P3,075U

b. P2,938 U

d. P3,075F