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# During September 40000 units were produced The standard quantity of material allowed per unit was 5 kg at a standard cost of

During September, 40,000 units were produced. The standard quantity of material allowed per unit was 5 kg at a standard cost of \$2.50 per kilogram. Suppose the company had a favourable usage variance of \$25,000 for September. What would have been the actual quantity of materials used?

a.95,000

b.105,000

c.190,000

d.210,000

52.Max Company has developed the following standards for one of its products.

Direct materials:15 kg ? \$16 per kilogram

Direct labour:4 hours ? \$24 per hour

Variable manufacturing overhead:4 hours ? \$14 per hour

The following activity occurred during the month of October:

Materials purchased:10,000 kg costing \$170,000

Materials used:7,200 kg

Units produced:500 units

Direct labour:2,300 hours at \$23.60 per hour

The company records materials price variances at the time of purchase. What is the direct materials price variance?

a.\$10,000 favourable

b.\$10,000 unfavourable

c.\$50,000 favourable

d.\$50,000 unfavourable

53.Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labour for the 100 units of Product AA are as follows:

Materials:StandardActual

Standard:200 kg at \$3.00 per kilogram\$600

Actual:220 kg at \$2.85 per kilogram\$627

Direct labour:

Standard:400 hours at \$15.00 per hour6,000

Actual:368 hours at \$16.50 per hour6,072

What is the labour efficiency variance for Bender Corporation?

a.\$480 (U)

b.\$480 (F)

c.\$552 (U)

d.\$552 (F)

54.Suppose the actual labour rate exceeds the standard labour rate, and the actual labour hours exceed the number of hours allowed. What would be the labour rate variance and labour efficiency variance?

Labour Rate        Labour Efficiency

Variance             Variance

a.favourable            favourable

b.favourable            unfavourable

c.unfavourable          favourable

d.unfavourable          unfavourable

55.During January, 7,000 direct labour hours were worked at a standard cost of \$20 per hour. Suppose the direct labour rate variance for January was \$17,500 favourable. What was the actual cost per direct labour hour?

a.\$17.50

b.\$20.00

c.\$22.50

d.\$25.00

56.During October, 10,000 direct labour hours were worked at a standard cost of \$10 per hour. Suppose the direct labour rate variance for October was \$4,000 unfavourable. What was the actual cost per direct labour hour?

a.\$9.20

b.\$9.60

c.\$10.00

d.\$10.40

57.During September, a small roofing company purchased 500 bundles of a certain type of shingle at a price of \$35 per bundle, \$5 less than the standard price. The company’s standard quantity of this type of shingles is 550 bundles. What is the journal entry to record the purchase of materials?

a.Materials                         20,000

Materials price variance             2,500

Accounts payable                    17,500

b.Materials                         20,000

Materials price variance           2,500

Accounts payable                    22,500

c.Materials                         17,500

Materials price variance             2,500

Accounts payable                    15,000

d.Materials                         20,000

Materials price variance             2,750

Accounts payable                    17,250

58.Setting a new minimum standard is which step in the kaizen cycle of kaizen costing?

a.plan

b.do

c.check

d.act

59.A company using kaizen costing emphasizes which of the following?

b.reducing quality of inputs

d.reducing the amount of employees

60.Kaizen costing involves which of the following?

a.changing the standards frequently

b.changing management

c.outsourcing processes

d.creating major ad campaigns

Mar 13 2020 View more View Less