1. When computing standard cost variances, the difference between


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Njain, Another homework assignment for managerial accounting. I will pay $10 + $75tip. I have already completed it but will look for verification of answers. Thanks for your help. HW #5.docx 1. When computing standard cost variances, the difference between actual and standard price multiplied by actual quantity yields a(n):When computing standard cost variances, the difference between actual and standard price multiplied by actual quantity yields a(n): combined price and quantity variance. efficiency variance. price variance. quantity variance. 2. The purchasing agent of the Dynazone Company ordered materials of lower quality in an effort to economize on price and in response to the demands of the production manager due to a mistake in production scheduling. The materials were shipped by airfreight at a rate higher than that ordinarily charged for shipment by truck, resulting in an unfavorable materials price variance. The lower quality material proved to be unsuitable on the production line and resulted in excessive waste. In this situation, who should be held responsible for the materials price and quantity variances? Materials Price Variance A B C D Purchasing Agent Production Manager Production Manager Purchasing Agent Materials Quantity Variance Purchasing Agent Production Manager Purchasing Agent Production Manager Option A Option D Option B Option C 3. Total Care planned to produce 3,000 units of its single product, Playmore, during November. The standard specifications for one unit of Playmore include six pounds of material at $0.30 per pound. Actual production in November was 3,100 units of Playmore. The accountant computed a favorable materials purchase price variance of $380 and an unfavorable materials quantity variance of $120. Based on these variances, one could conclude that: more materials were used than were purchased. more materials were purchased than were used. the actual usage of materials was less than the standard allowed. the actual cost of materials was less than the standard cost. 4. Skyscraper Company planned to produce 3,000 units of its single product, Titanium­magic, during November. The standards for one unit of Titanium­ magic specify six pounds of materials at $0.30 per pound. Actual production in November was 3,100 units of Titanium­magic. There was an unfavorable materials price variance of $380 and a favorable materials quantity variance of $120. Based on these variances, one could conclude that: the actual usage of materials was less than the standard allowed. the actual cost per pound for materials was less than the standard cost per pound. more materials were used than were purchased. more materials were purchased than were used. 5. If the labor efficiency variance is unfavorable, then: standard hours allowed for the actual output exceeded actual hours. actual hours exceeded standard hours allowed for the actual output. the actual rate exceeded the standard rate. the standard rate exceeded the actual rate. 6. The Primo Company has a standard cost system. In July the company purchased and used 22,500 pounds of direct material at an actual cost of $53,000; the materials quantity variance was $1,875 Unfavorable; and the standard quantity of materials allowed for July production was 21,750 pounds. The materials price variance for July was: $3,250 U $2,725 U 7. $3,250 F $2,725 F The Illustrious Company has a standard costing system. The following data are available for October: Actual quantity of direct materials purchased 25,000 pounds Standard price of direct materials $2 per pound Material price variance $2,500 unfavorable The actual price per pound of direct materials purchased in October is: 8. $1.85 $2.00 $2.15 $2.10 The Nationals Company uses standard costing. The following data are available for January: Actual quantity of direct materials used 12,200 gallons Standard price of direct materials $4 per gallon Material quantity variance $2,000 unfavo

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