Variance Analysis_Materials

What is the usage variance for material M?

• $783 favourable

• $1,122 adverse

• $1,914 adverse

• $1,972 adverse

A product requires raw material costing $0.5 per kg. In February 2,500 kgs of raw material were purchased at a cost of $1,500. 2,300 kgs of raw material were used.

Raw material inventory is valued at standard cost and there was no opening inventory of raw material.

What was the materials price variance for February?

• $250 adverse

• $230 adverse

• $230 favourable

• $250 favourable

For product DR, the material price variance for the month of August was $1,000 favourable and the material usage variance was $300 adverse.

The standard material usage per unit is 3 kg, and the standard material price is $2 per kg.

500 units were produced in the period. Opening inventories of raw materials were 100 kg and closing inventories 400 kg.

What were the material purchases in the period?

• 1,350 kg

• 1,950 kg

• 1,590 kg

• 2,000 kg

Which variance shows the difference between actual units should use and actual units did use?

• direct material total variance

• direct material price variance

• direct material usage variance

The difference between actual kgs should have cost and actual kgs did cost is____________.

• direct material price variance

• direct material usage variance

• direct material total variance

• none of the choices

XYZ uses standard costing. The following data relates to labour grade II.

Actual hours worked 10,400 hours

Standard Allowance for actual production 8320 hours

Standard Rate per hour $5

Rate Variance (adverse) $416

What is the actual rate of pay per hour?

• $4.96

• $5.04

• $4.95

• $5.05

Direct labour cost data relating to last month is as follows:

Actual hours worked 28,000

Total direct labour cost $117,600

Direct labour rate variance $8,400 adverse

Direct labour efficiency variance $3,900 favourable

To the nearest thousand hours, what were the standard labour hours for actual production last month?

• 31,000 hrs

• 27,000 hrs

• 29,000 hrs

• 25,000 hrs