1. Fletcher Company collected the following data regarding production of one of
ID: 2464496 • Letter: 1
Question
1.
Fletcher Company collected the following data regarding production of one of its products. Compute the total direct materials variance.
a. $6,000 favorable.
b. $3,570 unfavorable.
c. $2,430 favorable.
d. $6,000 unfavorable.
e. $3,570 favorable.
3.
Summerlin Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. The company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units. What is the direct materials price variance?
a. $400 unfavorable.
b. $450 unfavorable.
c. $2,500 unfavorable.
d. $2,550 unfavorable.
e. $2,950 unfavorable.
4.
Grant Co. uses the following standard to produce a single unit of its product: Variable overhead (2 hrs. per unit @ $4/hr.) Actual data for the month show total variable overhead costs of $190,000, and 23,000 units produced. The total variable overhead variance is:
a. $6,000F.
b. $6,000U.
c. $78,000U.
d. $78,000F.
e.$0.
Direct materials standard (6 lbs. @ $2/lb.) $12 per finished unit Actual direct materials used 243,000 lbs. Actual finished units produced 40,000 units Actual cost of direct materials used $483,570Explanation / Answer
Answer for question no.1:
Total direct material variance = Standard material cost - Actual material cost
=40,000*$12 - $483,570
=$480,000 - $483,570
=$3,570 (U)
Therefore, answer is option B.
Answer for question no.3:
Formula for direct material price varince = Actual material used*(Standard material price - Actual material price)
=4500 *($5 - $5.10)
=4500 * -$.10
=$450(U)
Answer is option B.
Answer for question no.4:
Formula for total variable overhead variance = Standard variable overhead cost - Actual variable overhead
= 23,000*2hrs*$4 per hour - $190,000.
=$184,000 -$190,000
=$6,000(U).
Answer is option b.
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