San Diego State University Operations And Supply Chain Management Assignment Help - Inventory

Question - 1. Use the following data to find the direct labor efficiency variance.
Direct labor standard (4 hrs. @ $7/hr.) $28 per unit
Actual Hours worked per unit 3.5 hours
Actual Units produced 3,500 units
Actual rate per hour $7.50
(A) $6,125 unfavorable
(B) $12,250 favorable
(C) $6,125 favorable
(D) $7,000 favorable
(E) $7,000 unfavorable
2. Use the following data to find the direct labor rate variance.
Direct labor standard (4 hrs. @ $7/hr.) $28 per unit
Actual hours worked per unit 3.5 hours
Actual units produced 3,500 units
Actual rate per hour $7.5
(A)$12,250 favorable
(B)$6,125 unfavorable
(C)$7,000 favorable
(D)$7,000 unfavorable
(E)$6,125 favorable
3. Use the following data to find the total direct labor cost variance. ...Read More
Direct labor standard (4 hrs. @ $7/hr.) $28 per unit
Actual hours worked per unit 3.5 hours
Actual units produced 3,500 units
Actual rate per hour $7.5
(A)$7,000 favorable
(B)$12,250 favorable
(C)$7,000 unfavorable
(D)$6,125 favorable
(E)$6,125 unfavorable
4. Actual fixed overhead for a company during March was $77,612. The flexible budget for fixed
overhead this period is $78,000 based on a production level of 4,875 units. If the company actually
produced 4,300 units, what is the fixed overhead volume variance for March?
(A) $388 unfavorable
(B) $9,200 unfavorable
(C) $9,200 favorable
(D) $388 favorable
(E) $8,812 unfavorable
5. The following company information is available:
Direct materials used for production 712 pounds
Standard quantity for units produced 750 pounds
Standard cost per pound of direct material $48
Actual cost per pound of direct material $50
The direct materials quantity variance is:
(A)$1,424 favorable
(B)$1,424 unfavorable

(C)$400 favorable
(D)$1,824 favorable
(E)$1,824 unfavorable
6.
Direct materials used for production 36,000 gallons
Standard quantity for units produced 34,400 gallons
Standard cost per gallon for direct material $6.00
Actual cost per gallon of direct material $6.10
The drect materials price variance is:
(A)$13,200 unfavorable
(B)$10,000 unfavorable
(C)$13,200 favorable
(D)$9,600 unfavorable
(E)$3,600 unfavorable
7. Landlubber Company established a standard direct materials cost of 1.5 gallons at $2 per gallon for
one unit of its product. During the past month, actual production was 6,500 units. The material
quantity variance was $700 favorable and the material price variance was $470 unfavorable. The
entry to charge Goods in Process Inventory for the standard material costs during the month and to
record the direct material variances in the accounts would include
(A) a credit to goods in process for $19,500
(B) A debit to raw materials for $19,500
(C) a credit to goods in process for $19,270
(D) a debit to direct material price variance for $470
(E) a debit to direct material quantity variance for $700
8. Adams, Inc., uses the following standard to produce a single unit of its product:
Overhead (2 hrs. @ $3/hr.) = $6
The flexible budget for overhead is $100,000 plus $1 per direct labor hour. Actual data for the month
show overhead costs of $150,000 based on 24,000 units of production. The overhead volume
variance is:
(A)$36,000 unfavorable
(B)$16,000 unfavorable
(C)$12,000 favorable
(D)$4,000 unfavorable
(E)$10,000 favorable ...Read Less

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