The Caquias Corporation makes a product with the following standard costs: Input

Question

The Caquias Corporation makes a product with the following standard costs: Inputs Direct materials Direct labor Standard Quantity 5.3 kilos 0.5 hours Standard Price $6.00 per kilo $10.00 per hour The company reported the following results concerning this product in August: Actual output Raw materials purchases and used in production Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost 2,100 units 10,860 kilos 1,100 hours $73,160 $10,560 19. The materials quantity variances for August is: A) $1,620 P B) $8,000 F C) $1,620 U D) $8,000 U E) $6,380U 20. The materials price variance for August is: ?) $1,620 F B) $8,000 F C) $1,620 U D) $8,000 U E) S6,380F 21. The labor quantity (efficiency) variance for August is A) $480 F B) $500 U C) $500 F D) $480 U E)$60 F 22. The labor price (rate) variance for August is: A) $440 F B) $440 U C) $420 U D) $420 F E)S 60 U

Explanation / Answer

Q19 A 1620 F Q20 D 8000 U Q21 B 500 U Q22 A 440 F Standard Actual Particulars Qty/ hours Rate amount Qty/ hours Rate amount Materials            11,130.00                      6.00            66,780.00            10,860.00                  6.7366            73,160.00 Labour              1,050.00               10.0000            10,500.00              1,100.00                      9.60            10,560.00 Actual output              2,100.00 Materials reqd (2100*5.3)            11,130.00 Labour hrs reqd (2100*.5)              1,050.00 DMPV = (SP-AP)*AQ purchased DMPV = (6 - 6.7366)10,860 DMPV = 8,000 U DMQV= (SQ-AQ)SP DMQV= (11130 - 10860)6 DMQV= 1620 F DLRV= (SR-AR)AH DLRV= (10 - 9.60)1100 DLRV= 440 F DLEV = (SH-AH)SR DLEV = (1050 - 1100)10 DLEV = 500 U

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