Matric no: ________ Name: ______________________________ Group: ____Att. List no.

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Tutorial 8: Chapter 11 (Variance Analysis)

1. A favorable variance occurs when

A.
B.
C.
D.

actual costs are less than static costs

actual costs are less than standard costs
standard costs are less than actual costs
standard costs are less than static costs

2. An unfavorable variance occurs when

A.
B.
C.
D.

standard costs are less than actual costs

actual costs are less than static costs
standard costs are less than static costs
actual costs are less than standard costs

3. The difference between the actual price and the standard price, multiplied by the actual quantity of
materials purchased is the
A.
B.
C.
D.

direct materials spending variance

direct materials volume variance
direct materials quantity variance
direct materials price variance

4. The difference between the actual quantity and the standard quantity, multiplied by the standard price is
the
A.
B.
C.
D.

direct materials volume variance

direct materials spending variance
direct materials price variance
direct materials quantity variance

5. Conan Company has a material standard of 1 pound per unit of output. Each pound has a standard price
of $25 per pound. During July, Conan paid $127,250 for 4,950 pounds, which they used to produce
4,700 units. What is the direct materials price variance?
A.
B.
C.
D.

$2,600 favorable
$3,500 unfavorable
$10,000 unfavorable
$12,600 unfavorable

6. Collin Company has a material standard of 1 pound per unit of output. Each pound has a standard price
of $25 per pound. During July, Collin paid $118,800 for 4,950 pounds, which they used to produce
4,900 units. What is the direct materials quantity variance?
A.
B.
C.
D.

$1,250 favorable
$1,250 unfavorable
$1,520 unfavorable
$2,600 favorable

7. Benan Company has a direct material standard of 1 gallons of input at a cost of $7.50 per gallon.
During July, Benan Company purchased and used 3,300 gallons, paying $46,600. The direct materials
quantity variance was $750 unfavorable. How many units were produced?
A.
B.
C.
D.

3,107 units
3,200 units
3,300 units
6,500 units

8. Calwan Company has a direct material standard of 3 gallons of input at a cost of $5 per gallon. During
July, Calwan Company purchased and used 2,500 gallons. The direct material quantity variance was
$750 unfavorable and the direct material price variance was $1,000 favorable. What price per gallon
was paid for the purchases?
A.
B.
C.
D.

$2.50
$5.00
$5.40
$4.60

Use the following information for questions 912:

Bridgetown Corporation produces a product that requires 2.5 pounds of materials per unit. The allowance for
waste and spoilage per unit is 0.4 pounds and 0.1 pounds, respectively. The purchase price is $4 per pound, but
a 2% discount is usually taken. Freight costs are $0.10 per pound, and receiving and handling costs are $0.15
per pound.
The hourly wage rate is $9.00 per hour, but a raise which will average $.50 will go into effect soon. Fringe
benefits average $2.00 per hour. Standard production time is 2 hours per unit, and the allowances for rest
periods and setup are 0.1 hours and 0.2 hours.
9. The standard direct materials price per pound is
A.
B.
C.
D.

$4.25
$4.17
$4.00
$3.92

10. The standard direct materials quantity per unit is

A.
B.
C.
D.

3.0 pounds
2.9 pounds
2.7 pounds
2.6 pounds

11. The standard direct labor rate per hour is

A.
B.
C.
D.

$ 9.00
$ 9.50
$11.50
$11.00

12. The standard direct labor hours per unit is

A.
B.
C.
D.

2 hour
2.1 hours
3.2 hours
2.3 hours

Use the following information for questions 13-15:

A Company has a standard of 1 hours of labor per unit, at $12 per hour. In producing
4,000 units, Company used 3,850 hours of labor at a total cost of $46,970.
13. Companys labor price variance is
A.
B.
C.
D.

$770 F
$770 U
$1,030 F
$1,930 F

14. Companys labor quantity variance is

A.
B.
C.
D.

$770 U
$1,030 F
$1,800 F
$1,930 F

15. Companys total labor variance is

A.
B.
C.
D.

$1,930 F
$1,030 F
$800 U
$770 U

Use the following information for questions 16-18:

The actual direct labor wage rate is $8.50 and 4,500 direct labor-hours were actually worked during the month.
The standard direct labor wage rate is $8.00 and the standard quantity of hours allowed for the actual level of
output was 5,000 direct labor-hours. The standard variable overhead per direct labor-hour is $5.00.
16. What is the variable overhead spending variance if the variable manufacturing overhead costs was
$24,750?
A.
B.
C.
D.

$2,250 F
$2,500 F
$2,500 U
$2,250 U

17. What is the variable overhead efficiency variance?

A.
B.
C.
D.

$2,500 F
$5,000 F
$5,000 U
$2,500 U

18. What is the variable overhead total variance?

A.
B.
C.
D.

$250 U
$2,500 F
$2,500 U
$250 F