8. INICIO, DEMORA Y SUSPENSIÓN
8.1 Inicio de la obra
29. KNOTTY, Inc. estimated the cost of a project it started in October 19x4 as follows: Direct materials, P495,000; direct labor, 6,000 hours at P30 per hour; variable overhead, P24 per direct labor hour. By the end of the month, all the required materials have been used at P491,900; labor was 80% complete at 4,650 hours at P30 per hour; and, the variable overhead amounted to P113,700. The total variance for the project as at the end of the month was (M)
a. P7,500 unfavorable c. P9,000 favorable
b. P8,400 unfavorable d. P9,00 favorable RPCPA 1094
DM and DL Variances
Questions 127 and 128 are based on the following information. CIA 0595 III-81 & 82 A company manufactures a machine component called Omega. The following relates to manufacturing operations in May.
Planned production 2,000 units of Omega Actual production 2,100 units of Omega Standard costs per unit of Omega
Direct materials $20 (5 lbs. @ $4)
Direct labor $10 (1 hr. @ $10)
Actual costs incurred
Direct materials purchased and used $44,772 (10,920 lbs. @ $4.10)
Direct labor $20,500 (2,000 hr. @ $10.25)
209. The direct materials efficiency variance was (E)
A. $1,092 unfavorable. C. $3,680 unfavorable. B. $1,680 unfavorable. D. $3,772 unfavorable.
210. The direct labor flexible budget variance was (E)
A. $500 favorable. C. $1,000 favorable.
B. $500 unfavorable. D. $0
Questions 129 and 130 are based on the following information. RPCPA 1082 The Sta. Anita Company has a budgeted normal monthly capacity of 5,000 labor hours with a standard production of 4,000 units are this capacity. Standard costs are:
Materials - 2 kilos at P1.00
Labor - P8.00 per hour
Factory overhead at normal capacity
Fixed expenses - P5,000
Variable expenses - P1.50 per labor hour
During September, actual factory overhead totaled P11,250 and 4,500 labor hours cost P33,750. Production during the month was 3,500 units using 7,200 kilos of materials at a cost of P1.02 per kilo.
*. The material price variance during September was (M)
a. P1,440 unfavorable d. P3,440 unfavorable
b. P204 favorable e. None of the above
c. P140 favorable
*. The labor efficiency variance was (E)
a. P2,250 unfavorable c. P2,187.50 favorable
b. P1,000 unfavorable d. P62.50 favorable
Questions 131 through 133 are based on the following information. CIA 0594 III-72 to 74 A company manufactures one product and has a standard cost system. In April the company had the following experience:
Direct Materials Direct Labor
Actual $/unit of input (lbs. & hrs.) $28 $18
Standard price/unit of input $24 $20
Standard inputs allowed per unit of output 10 4
Actual units of input 190,000 78,000
Actual units of output 20,000 20,000
211. The direct materials price variance for April is (M)
A. $760,000 favorable. C. $240,000 unfavorable. B. $760,000 unfavorable. D. $156,000 favorable.
212. The direct materials efficiency variance for April is (M)
A. $156,000 favorable. C. $240,000 unfavorable. B. $240,000 favorable. D. $760,000 unfavorable.
213. The direct labor rate variance for April is (E)
A. $240,000 favorable. C. $156,000 favorable. B. $156,000 unfavorable. D. $40,000 unfavorable.
Questions 32 thru 34 are based on the following information. H & M Rinker Company produced 100 units of Product X. The total standard and actual costs for materials and direct labor for the 100 units of Product X are as follows:
Raw materials: Standard Actual
Standard: 100 pounds at $2.00 per pound $200
Actual: 110 pounds at $1.90 per pound $209
Direct labor:
Standard: 200 hours at $10 per hour 2,000
Actual: 184 hours at $11 per hour 2,024
214. What is the material usage variance for Rinker Company?
a. $9 (U) d. $11 (U)
b. $20 (F) e. $20 (U)
c. $11 (F)
215. What is the material price variance for Rinker Company?
a. $9 (U) d. $11 (U)
b. $20 (F) e. $20 (U)
c. $11 (F)
216. What is the labor efficiency variance for Rinker Company?
a. $160 (U) d. $160 (F)
b. $184 (F) e. $24 (U)
c. $184 (U)
Questions 134 through 137 are based on the following information. CMA 1291 3-1 to 4 Arrow Industries employs a standard cost system in which direct materials inventory is carried at standard cost. Arrow has established the following standards for the prime costs of one unit of product.
Direct materials 8 pounds $1.80 per pound $14.40
Direct labor . 25 hour 8.00 per hour 2.00
$16.40 During November, Arrow purchased 160,000 pounds of direct materials at a total cost of $304,000. The total factory wages for November were $42,000, 90% of which were for direct labor. Arrow manufactured 19,000 units of product during November using 142,500 pounds of direct materials and 5,000 direct labor hours.
217. The direct materials purchase price variance for November is (E)
A. $16,000 favorable. C. $14,250 favorable. B. $16,000 unfavorable. D. $14,250 unfavorable.
218. The direct materials usage (quantity) variance for November is (E)
A. $14,400 unfavorable. C. $17,100 unfavorable. B. $1,100 favorable. D. $17,100 favorable.
219. The direct labor price (rate) variance for November is (E)
A. $2,200 favorable. C. $2,000 unfavorable. B. $1,900 unfavorable. D. $2,090 favorable.
220. The direct labor usage (efficiency) variance for November is (E)
A. $2,200 favorable. C. $2,000 unfavorable. B. $2,000 favorable. D. $1,800 unfavorable.
Questions 138 through 141 are based on the following information. CMA 0692 3-18 to 21 Jackson Industries, which employs a standard cost system in which direct materials inventory is carried at standard cost. Jackson has established the following standards for the prime costs of one unit of product. During May, Jackson purchased 125,000 pounds of direct materials at a total cost of $475,000. The total factory wages for May were $364,000, 90% of which were for direct labor.
Jackson manufactured 22,000 units of product during May using 108,000 pounds of direct materials and 28,000 direct labor hours.
Standard Quantity Standard Price Standard Cost
Direct materials 5 pounds $3.60/pound $18.00
Direct labor 1.25 hours $12.00/hr. 15.00
$33.00
221. The purchase price variance for the direct materials acquired by Jackson Industries during
May is (E)
a. $21,600 favorable. c. $28,000 favorable.
b. $25,000 unfavorable. d. $21,600 unfavorable.
222. The direct materials usage (quantity) variance for May is (E)
A. $7,200 unfavorable. C. $5,850 unfavorable. B. $7,600 favorable. D. $7,200 favorable.
223. The direct labor price (rate) variance for May is (E)
A. $8,400 favorable. C. $8,400 unfavorable. B. $7,200 unfavorable. D. $6,000 favorable.
224. The direct labor usage (efficiency) variance for May is (E)
A. $5,850 favorable. C. $5,850 unfavorable. B. $6,000 unfavorable. D. $6,000 favorable.
Questions 78-82 are based on the following information: G & N 10e The Geurtz Company uses standard costing. The company makes and sells a single product called a Roff. The following data are for the month of August:
Actual cost of direct material purchased and used: $65,560 Material price variance: $5,960 unfavorable
Total materials variance: $22,360 unfavorable Standard cost per pound of material: $4
Standard cost per direct labor hour: $5 Actual direct labor hours: 6,500 hours Labor efficiency variance: $3,500 favorable
Standard number of direct labor hours per unit of Roff: 2 hours Total labor variance: $400 unfavorable
78. The total number of units of Roff produced during August was:
A. 10,800. C. 3,600.
B. 14,400. D. 6,500.
79. The standard material allowed to produce one unit of Roff was:
A. 1 lb. C. 3 lbs.
B. 4 lbs. D. 2 lbs.
80. The actual material cost per pound was:
A. $4.00. C. $3.30.
B. $3.67. D. $4.40.
81. The actual direct labor rate per hour was:
A. $ 5.60. C. $10.00.
B. $ 5.00. D. $ 4.40.
82. The labor rate variance was:
A. $3,900 favorable. C. $3,100 unfavorable.
B. $3,900 unfavorable. D. $3,100 favorable.
Questions 52 through 55 are based on the following information. Barfield The following July information is for Kingston Company:
Standards:
Material 3.0 feet per unit @ $4.20 per foot Labor 2.5 hours per unit @ $7.50 per hour Actual:
Production 2,750 units produced during the month
Material 8,700 feet used; 9,000 feet purchased @ $4.50 per foot Labor 7,000 direct labor hours @ $7.90 per hour
(Round all answers to the nearest dollar.)
52. What is the material price variance (calculated at point of purchase)?
a. $2,700 U c. $2,610 F
b. $2,700 F d. $2,610 U
53. What is the material quantity variance?
a. $3,105 F c. $3,105 U
b. $1,050 F d. $1,890 U
54. What is the labor rate variance?
a. $3,480 U c. $2,800 U
b. $3,480 F d. $2,800 F
55. What is the labor efficiency variance?
a. $1,875 U c. $1,875 U
b. $938 U d. $1,125 U
Questions 61 through 64 are based on the following information. Barfield The following March information is available for Batt Manufacturing Company when it produced 2,100 units:
Standard:
Material 2 pounds per unit @ $5.80 per pound
Labor 3 direct labor hours per unit @ $10.00 per hour Actual:
Material 4,250 pounds purchased and used @ $5.65 per pound Labor 6,300 direct labor hours at $9.75 per hour
61. What is the material price variance?
a. $637.50 U c. $630.00 U
b. $637.50 F d. $630.00 F
62. What is the material quantity variance?
a. $275 F c. $290 U
b. $290 F d. $275 U
63. What is the labor rate variance?
a. $1,575 U c. $1,594 U
64. What is the labor efficiency variance?
a. $731.25 F c. $750.00 F
b. $731.25 U d. none of the above
Questions 57 thru 60 are based on the following information. G & N 9e Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product:
Standard Quantity Standard Price Standard Cost
Direct materials .... 6 pounds $ 3.50/pound $21.00
Direct labor ... 1.3 hours $11.00/hour 14.30
$35.30
During March, Bryan purchased 165,000 pounds of direct material at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labor. Bryan manufactured 25,000 units of product during March using 151,000 pounds of direct material and 32,000 direct labor hours.
57. The price variance for the direct material acquired by the company during March is: (M) a. $7,550 favorable. c. $7,550 unfavorable.
b. $8,250 unfavorable. d. $8,250 favorable. 58. The direct material quantity variance for March is: (M)
a. $3,500 unfavorable. c. $3,500 favorable. b. $3,550 favorable. d. $3,550 unfavorable. 59. The direct labor rate variance for March is: (E)
a. $ 8,000 favorable. c. $ 8,000 unfavorable. b. $48,000 unfavorable. d. $48,000 favorable. 60. The direct labor efficiency variance for March is: (E)
a. $5,625 unfavorable. c. $5,625 favorable. b. $5,500 favorable. d. $5,500 unfavorable.
Questions 81 thru 84 are based on the following information. G & N 9e The Alpha Company produces toys for national distribution. Standards for a particular toy are:
Materials: 12 ounces per unit at 56¢ per ounce.
Labor: 2 hours per unit at $2.75 per hour.
During the month of December, the company produced 1,000 units. Information for the month follows:
Materials: 14,000 ounces were purchased and used at a total cost of $7,140. Labor: 2,500 hours worked at a total cost of $8,000.
81. The materials price variance is: (E)
a. $700 U. c. $420 F.
b. $420 U. d. $700 F.
82. The materials quantity variance is: (E)
a. $1,120 U. c. $1,820 U.
b. $1,820 F. d. $1,120 F.
83. The labor rate variance is: (E)
a. $2,500 F. c. $1,125 U.
b. $1,125 F. d. $2,500 U.
84. The labor efficiency variance is: (E)
a. $1,600 U. c. $1,375 F.
b. $1,375 U. d. $1,600 F.
Questions 56 through 60 are based on the following information. Barfield Timothy Company has the following information available for October when 3,500 units were produced (round answers to the nearest dollar).
Standards:
Material 3.5 pounds per unit @ $4.50 per pound Labor 5.0 hours per unit @ $10.25 per hour Actual:
Material purchased 12,300 pounds @ $4.25 Material used 11,750 pounds
Labor 17,300 direct labor hours @ $10.20 per hour 56. What is the labor rate variance?
a. $875 F c. $865 U
b. $865 F d. $875 U
57. What is the labor efficiency variance?
b. $2,050 U d. $2,040 F 58. What is the material price variance (based on quantity purchased)?
a. $3,075 U c. $2,938 F
b. $2,938 U d. $3,075 F
59. What is the material quantity variance?
a. $2,250 F c. $225 F
b. $2,250 U d. $2,475 U
60. Assume that the company computes the material price variance on the basis of material issued to production. What is the total material variance?
a. $2,850 U c. $5,188 F
b. $5,188 U d. $2,850 F
Questions 70-73 are based on the following information: G & N 10e The Thompson Company uses standard costing and has established the following direct material and direct labor standards for each unit of Lept.
Direct materials 2 gallons at $4 per gallon
Direct labor 0.5 hours at $8 per hour
During September, the company made 6,000 Lepts and incurred the following costs:
Direct materials purchased 13,400 gallons at $4.10 per gallon
Direct materials used 12,600 gallons
Direct labor used 2,800 hours at $7.65 per hour
70. The material price variance for September was:
A. $1,340 favorable. C. $1,260 unfavorable.
B. $1,260 favorable. D. $1,340 unfavorable.
71. The material quantity variance for September was:
A. $2,460 unfavorable. C. $2,400 unfavorable. B. $5,600 unfavorable. D. $5,740 unfavorable. 72. The labor rate variance for September was:
A. $1,530 unfavorable. C. $ 280 favorable.
B. $ 980 favorable. D. $ 980 unfavorable.
73. The labor efficiency variance for September was:
A. $33,600 favorable. C. $22,400 favorable.
B. $ 1,600 favorable. D. $ 3,200 favorable.
THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 111 THROUGH 113. Horngren Ruben’s Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance.
Variances
Flexible Budget Price Efficiency
Material A $20,000 $1,000F $3,000U
Material B 30,000 500U 1,500F
Direct manufacturing labor 40,000 500U 2,500F
111. The MOST likely explanation of the above variances for Material A is that (M) a. a lower price than expected was paid for Material A.
b. higher-quality raw materials were used than were planned. d. the company used a higher-priced supplier.
d. Material A used during September was $2,000 less than expected. 225. The actual amount spent for Material B was (E)
b. $29,000. d. $31,000.
113.The MOST likely explanation of the above direct manufacturing labor variances is that (M) a. the average wage rate paid to employees was less than expected.
b. employees did not work as efficiently as expected to accomplish the job.
c. the company may have assigned more experienced employees this month than originally planned.
d. management may have a problem with budget slack and be using lax standards for both labor-wage rates and expected efficiency.
THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 96 THROUGH 100. Horngren Robb Industries Inc. (RII) developed standard costs for direct material and direct labor. In 2004, RII estimated the following standard costs for one of their major products, the 10-gallon plastic container.
Budgeted quantity Budgeted price
Direct materials 0.10 pounds $30 per pound
Direct labor 0.05 hours $15 per hour
During June RII produced and sold 5,000 containers using 490 pounds of direct materials at an average cost per pound of $32 and 250 direct manufacturing labor-hours at an average wage of $15.25 per hour.
226. June’s direct material flexible-budget variance is (E)
a. $980 unfavorable. c. $680 unfavorable.
b. $300 favorable. d. none of the above.
227. June’s direct material price variance is (E)
a. $980 unfavorable. c. $680 favorable.
b. $300 favorable. d. none of the above.
228. June’s direct material efficiency variance is (E)
a. $980 unfavorable. c. $680 favorable.
b. $300 favorable. d. none of the above.
229. June’s direct manufacturing labor price variance is (E)
a. $62.50 unfavorable. c. $3,811.75 unfavorable.
b. $62.50 favorable. d. none of the above.
230. June’s direct manufacturing labor efficiency variance is
a. $62.50 unfavorable. c. $3,811.75 unfavorable.
b. $62.50 favorable. d. none of the above.
THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 101 THROUGH 106. Horngren
Sawyer Industries Inc. (SII) developed standard costs for direct material and
direct labor. In 2004, SII estimated the following standard costs for one of their
major products, the 30-gallon heavy-duty plastic container.
Direct materials 0.20 pounds $25 per pound
Direct labor 0.10 hours $15 per hour
During July SII produced and sold 10,000 containers using 2,200 pounds of direct materials at an average cost per pound of $24 and 1,050 direct manufacturing labor hours at an average wage of $14.75 per hour.
231. July’s direct material flexible-budget variance is (E)
a. $2,800 unfavorable. c. $5,000 unfavorable.
b. $2,200 favorable. d. none of the above.
232. July’s direct material price variance is (E
a. $2,800 favorable. c. $5,000 unfavorable.
b. $2,200 favorable. d. none of the above.
233. July’s direct material efficiency variance is (E)
a. $2,800 unfavorable. c. $5,000 unfavorable.
b. $2,200 favorable. d. none of the above.
234. July’s direct manufacturing labor flexible-budget variance is (E)
a. $750.00 unfavorable. c. $487.50 unfavorable.
b. $262.50 favorable. d. none of the above.
235. July’s direct manufacturing labor price variance is (E)
a. $750.00 unfavorable. c. $487.50 favorable.
b. $262.50 favorable. d. none of the above.
236. July’s direct manufacturing labor efficiency variance is
a. $750.00 unfavorable. c. $487.50 favorable.
b. $262.50 favorable. d. none of the above.
Questions 66-69 are based on the following information: G & N 10e Arrow Industries employs a standard cost system in which direct materials inventory is carried at standard cost. Arrow has established the following standards for the prime costs of one unit of product.
Standard Quantity Standard Price Standard Cost
Direct materials 8 pounds $1.80 per pound $14.40
Direct labor 0.25 hour $8.00 per hour $ 2.00
During May, Arrow purchased 160,000 pounds of direct material at a total cost of $304,000. The total direct labor wages for May were $37,800. Arrow manufactured 19,000 units of product during May using 142,500 pounds of direct material and 5,000 direct labor hours.
66. The direct material price variance for May is:
A. $16,000 favorable. C. $14,250 favorable. B. $16,000 unfavorable. D. $14,250 unfavorable. 67. The direct material quantity variance for May is:
A. $14,400 unfavorable. C. $17,100 unfavorable.
B. $1,100 favorable. D. $17,100 favorable.
68. The direct labor rate variance for May is:
A. $2,200 favorable. C. $2,000 unfavorable.
B. $1,900 unfavorable. D. $2,090 favorable. 69. The direct labor efficiency variance for May is:
A. $2,200 favorable. C. $2,000 unfavorable.
B. $2,000 favorable. D. $1,800 unfavorable.
DM & DL Mix & Yield Variances
Questions 96 through 101 are based on the following information. Barfield Xtra Klean manufactures a cleaning solvent. The company employs both skilled and unskilled workers. Skilled workers class C are paid $12 per hour, while unskilled workers class D are paid $7 per hour. To produce one 55-gallon drum of solvent requires 4 hours of skilled labor and 2 hours of unskilled labor. The solvent requires 2 different materials: A and B. The standard and actual material information is given below:
Standard:
Material A: 30.25 gallons @ $1.25 per gallon Material B: 24.75 gallons @ $2.00 per gallon Actual:
Material A: 10,716 gallons purchased and used @ $1.50 per gallon Material B: 17,484 gallons purchased and used @ $1.90 per gallon Skilled labor hours: 1,950 @ $11.90 per hour
Unskilled labor hours: 1,300 @ $7.15 per hour
During the current month Xtra Klean manufactured 500 55-gallon drums. (Round all answers to the nearest whole dollar.)
96. What is the total material price variance?
a. $877 F c. $931 U
b. $877 U d. $931 F
97. What is the total material mix variance?
a. $3,596 F c. $4,864 F
b. $3,596 U d. $4,864 U
98. What is the total material yield variance?
a. $1,111 U c. $2,670 U
b. $1,111 F d. $2,670 F
99. What is the labor rate variance?
a. $0 c. $2,583 U
b. $1,083 U d. $1,083 F
100.What is the labor mix variance?
a. $1,083 U c. $1,083 F
b. $2,588 U d. $2,588 F
101.What is the labor yield variance?
a. $2,583 U c. $1,138 F
b. $2,583 F d. $1,138 U
Total Variance and DL Variance
Questions 142 and 143 are based on the following information. RPCPA 0583 Edsol Company uses flexible budget in its standard cost system to develop variances. The following selected data are given.
Data on standard costs:
Raw materials per unit 5 lbs. at P1.00/lb., P5.00 Direct labor per unit 8 hrs. at P3.00/hr., P24.00
Variable factory overhead per unit P3.00 per direct labor hour, P24.00 Fixed factory overhead per month P25,000
Normal activity per month 8,000 direct labor hours Units produced in April 1,000 units
Costs incurred for April
Raw materials 5,000 lbs. at P1.10/lb.
Direct labor 7,000 lbs. at P3.10/hr.
Variable factory overhead P27,000 Fixed factory overhead P28,000 *. The total variance to be explained for April is (M)
a. P4,200 favorable c. P5,200 favorable
b. P4,200 unfavorable d. P5,200 unfavorable
*. The labor efficiency variance for April is (M)
a. P3,000 favorable c. P3,100 favorable
b. P3,000 unfavorable d. P3,100 unfavorable
DM and OH Variances
Questions 144 through 148 are based on the following information. Gleim Funtime, Inc, manufactures video game machines. Market saturation and technological innovations have caused pricing pressures which have resulted in declining profits. To stem the slide in profits until new products can be introduced, an incentive program has been developed to reward production managers who contribute to an increase in the number of units produced and effect cost reductions.
The managers have responded to the pressure of improving manufacturing in several ways. The video game machines are put together by the Assembly Group which requires parts from both the Printed Circuit Boards (PCB) and the Reading Heads (RH) groups. To attain increased production levels, the PCB and RH groups commenced rejecting parts that previously would have been tested and modified to meet manufacturing standards. Preventive maintenance on machines used in the production of these parts has been postponed with only emergency repair work being performed to keep production lines moving.
The more aggressive Assembly Group production supervisors have pressured maintenance personnel to attend to their machines at the expense of other groups. This has resulted in machine downtime in the PCB and RH groups which, when coupled with demands for accelerated parts delivery by the Assembly Group, has led to more frequent parts rejections and increased friction among departments.
Funtime operates under a standard cost system. The standard costs for video game machines are as follows:
Standard Cost per Unit
Cost Item Quantity Cost Total
Direct Materials
Housing unit 1 $20 $20
Printed circuit boards 2 15 30
Direct labor
Assembly group 2 hours 8 16
PCB group 1 hour 9 9
RH group 1.5 hours 10 15
Variable overhead 4.5 hours 2 9
Total standard cost per unit $139
Funtime prepares monthly performance reports based on standard costs. Presented below is the contribution report for May, when production and sales both reached 2,200 units.
Funtime Inc. Contribution Report For the Month of May
Budget Actual Variance
Units 2,000 2,200 200F
Revenue $400,000 $440,000 $40,000F
Variable costs
Direct material 180,000 220,400 40,400U
Direct labor 80,000 93,460 13,460U
Variable overhead 18,000 18,800 800U
Total variable costs 278,000 332,660 54,660U
Contribution margin $122,000 $107,340 $14,660U
Funtime’s top management was surprised by the unfavorable contribution to overall corporate profits in spite of the increased sales in May. Jack Rath, cost accountant, was assigned to identify to reasons for the unfavorable contribution results as well as the individuals or groups responsible. After review, Rath prepared the Usage Report presented below.
Funtime Inc. Usage Report For the Month of May
Cost Item Quantity Actual Cost
Direct material
Housing units 2,200 units $ 44,000
Printed circuit boards 4,700 units 75,200
Reading heads 9,200 units 101,200
Direct labor
Assembly 3,900 hours 31,200
Printed circuit boards 2,400 hours 23,760
Reading heads 3,500 hours 38,500
Variable overhead 9,900 hours 18,800
Total variable cost $332,660
Rath reported that the PCB and RH groups supported the increased production levels but experienced abnormal machine downtime, causing idle manpower which required the use of overtime to keep u with the accelerated demand for parts. The idle time was charged to direct labor. Rath also reported that the production managers of these two groups resorted to parts rejections, as opposed to testing and modification procedures formerly applied. Rath determined that the Assembly Group met management’s objectives by increasing production while using lower than standard hours.
237. What is the total materials price variance? (M)
a. $346,500 favorable. c. $13,900 favorable. b. $346,500 unfavorable d. $13,900 unfavorable.
238. What is the total materials quantity variance? (M)
a. $8,500 unfavorable. c. $9,200 unfavorable.
b. $8,500 favorable. d. $9,200 favorable.
239. What is the variable overhead efficiency variance? (M)
a. $0 c. $9,900 unfavorable.
b. $900 unfavorable. d. $9,900 favorable.
240. What is the variable overhead spending variance? (M)
a. $1,000 unfavorable. c. $1,800 unfavorable.
241. What is the contribution margin volume variance? (M)
a. $9,800 unfavorable. c. $12,200 favorable.
b. $9,800 favorable. d. $14,660 unfavorable.
DL and OH Variances
27. SUPER Co. at normal capacity, operates at 600,000 labor hours with standard labor rate of P20 per hour. Variable factory overhead is applied at the rate of P12 per labor hour. Four units should be completed in an hour.
Last year, 1,350,000 units were produced using 300,000 labor hours. All labor hours were paid at the standard rate, and actual overhead cost consisted of P3,738,000 for variable items and P3,000,000 fixed items.
The total labor and overhead costs saved, by producing at more than standard, amounted to (M)
a. P450,000 c. P750,000
b. P500,000 d. P1,200,000 RPCPA 0594
Questions 149 through 151 are based on the following information. CMA 0692 3-15 to 17 An organization that specializes in reviewing and editing technical magazine articles. It set the