9. Carley Company has a materials price standard of $2.10 per pound. Six thousan

Question

9. Carley Company has a materials price standard of $2.10 per pound. Six thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 6,000 pounds, although the standard quantity allowed for the output was 5,400 pounds. Carley Company's total materials variance is: (Answer: $1,860 unfavorable)

10. King Inc. produces a product requiring 3 direct labor hours at $15 per hour. During January, 2,000 products are produced using 6,300 direct labor hours. King’s actual payroll during January was $98,280. What is the labor quantity variance? (Answer: $4,500 unfavorable)

11. A company developed the following per-unit standards for its product: 2 gallons of direct materials at $8 per gallon. Last month, 3,000 gallons of direct materials were purchased for $22,500. The direct materials price variance for last month was: (Answer: $1,500 favorable)

Explanation / Answer

materials per pound Total Difference of material 600 2.1 1260 Unfavorable Value 6000 0.1 600 1860 Total material Per Pound Difference of material 6000 5400 600 product direct labor labor hours 1 3 15 per / Hour 45 2000 6300 15 per / Hour 94500 2000 3 15 per / Hour 90000 4500 gallons per gallon Total 2 8 3000 7.5 22500 Difference 0.5 3000 0.5 1500

Related Questions

Navigate

• Browse (All)
• Browse 9
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.