1. If the actual cost per pound of direct material is less than the standard cos

Question

1. If the actual cost per pound of direct material is less than the standard cost per pound, there is: A) A favorable materials price variance. B) An unfavorable materials price variance. C) A favorable materials quantity variance. D) A favorable total materials variance. 2. The calculation of the labor rate variance is: A) Standard rate multiplied by (standard hours minus actual hours). B) Standard hours multiplied by (standard rate minus actual rate). C) Actual labor hours multiplied by (standard rate minus actual rate). D) Actual rate multiplied by (standard hours minus actual hours). 3. An unfavorable overhead volume variance indicates that: a Total fixed overhead exceeds the standard amount budgeted. b Variance overhead per unit exceeds the standard amount budgeted. c Actual production was less than what is typically considered the normal volume of output. d Actual production was more than what is typically considered the normal volume of output 4. A favorable overhead spending variance means that: a Overhead has been overapplied. b Overhead has been underapplied c Actual production was less than what is typically considered the normal volume of output. d None of the above. 5. In establishing standard casts for labor, management must look at all of the following, except A) Time allowed to produce each product B) Direct labor requirements for each product C) The wage rate of a direct laborer D) The quantity of materials for each product 6. A total cost variance for materials can result from A) Differences in the quantities used B) Differences in the prices paid to suppliers C) Both A and B D) Neither A nor B

Explanation / Answer

As per chegg guidelines we answer one question per post. But I have answered multiple questions. Kindly post remaining questions in next post Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Q1 A A favourable material price variance Q2 C Actual labour hours multiplied by (standard rate minus actual rate) DLRV= (SR-AR)AH Q6 C Cost variance may be due to difference in quantities and price DMPV = (SP-AP)*AQ purchased DMQV= (SQ-AQ)SP

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