This document contains multiple questions and examples related to standard costing and variance analysis. It discusses topics like direct material costs, standard costs, actual costs, variances, and calculations to determine standard quantities allowed, actual quantities used, and the resulting variances. The document contains data on production quantities, material costs and prices, purchases, inventory, and variances to help solve problems and examples related to standard costing systems.
This document contains multiple questions and examples related to standard costing and variance analysis. It discusses topics like direct material costs, standard costs, actual costs, variances, and calculations to determine standard quantities allowed, actual quantities used, and the resulting variances. The document contains data on production quantities, material costs and prices, purchases, inventory, and variances to help solve problems and examples related to standard costing systems.
This document contains multiple questions and examples related to standard costing and variance analysis. It discusses topics like direct material costs, standard costs, actual costs, variances, and calculations to determine standard quantities allowed, actual quantities used, and the resulting variances. The document contains data on production quantities, material costs and prices, purchases, inventory, and variances to help solve problems and examples related to standard costing systems.
This document contains multiple questions and examples related to standard costing and variance analysis. It discusses topics like direct material costs, standard costs, actual costs, variances, and calculations to determine standard quantities allowed, actual quantities used, and the resulting variances. The document contains data on production quantities, material costs and prices, purchases, inventory, and variances to help solve problems and examples related to standard costing systems.
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If the total standard variable cost for one unit of finished product is $85, then the standard price
per pound for direct materials is: (M) A. $1.74. C. $5.90. B. $4.60. D. $3.00. G & N 10e Material Quantity Variance 37. Cox Company's direct material costs for the month of January were as follows: Actual quantity purchased 18,000 kilograms Actual unit purchase price $ 3.60 per kilogram Materials price variance – unfavorable (based on purchases) $ 3,600 Standard quantity allowed for actual production 16,000 kilograms Actual quantity used 15,000 kilograms For January there was a favorable direct material quantity variance of: (M) a. $3,360. c. $3,400. b. $3,375. d. $3,800. G & N 9e Materials Quantity Variance Actual Quantity Used 34 . During April, 80,000 units were produced. The standard quantity of material allowed per unit was 2 pounds at a standard cost of $5 per pound. If there was a favorable usage variance of $40,000 for April, the actual quantity of materials used must have been (M) a. 168,000 pounds c. 84,000 pounds b. 152,000 pounds d. 76,000 pounds H & M 35 . During April, 20,000 units were produced. The standard quantity of material allowed per unit was 4 pounds at a standard cost of $6 per pound. If there was an unfavorable usage variance of $30,000 for April, the actual quantity of materials used must be (M) a. 85,000 pounds c. 21,250 pounds b. 75,000 pounds d. 18,750 pounds H & M 36 . ChemKing uses a standard costing system in the manufacture of its single product. The 35,000 units of raw material in inventory were purchased for $105,000, and two units of raw material are required to produce one unit of final product. In November, the company produced 12,000 units of product. The standard allowed for material was $60,000, and there was an unfavorable quantity variance of $2,500. The units of material used to produce November output totaled (M) a. 12,000 units c. 23,000 units b. 12,500 units d. 25,000 units CMA 1293 3-23 Actual Price 44. The Swenson Company has a standard costing system. The following data are available for June: Actual quantity of direct materials purchased 35,000 pounds Standard price of direct materials $4 per pound Material price variance $7,000 unfavorable Material quantity variance $4,200 favorable The actual price per pound of direct materials purchased in June is: (M) A. $3.92. C. $4.08. B. $4.32. D. $4.20. G & N 10e Standard Quantity Allowed 45. The Fletcher Company uses standard costing. The following data are available for October: Actual quantity of direct materials used 23,500 pounds Standard price of direct materials $2 per pound Material quantity variance $1,000 favorable The standard quantity of material allowed for October production is: (M) a. 23,000 lbs. c. 24,500 lbs. b. 24,000 lbs. d. 25,000 lbs. G & N 9e 43. The Cox Company uses standard costing. The following data are available for April: Actual quantity of direct materials used 12,200 gallons Standard price of direct materials $4 per gallon Material quantity variance $2,000 unfavorable The standard quantity of material allowed for April production is: (M) A. 14,200 gallons. C. 11,700 gallons. B. 12,700 gallons. D. 10,200 gallons. G & N 10e Standard Unit Cost 37 . ChemKing uses a standard costing system in the manufacture of its single product. The 35,000 units of raw material in inventory were purchased for $105,000, and two units of raw material are required to produce one unit of final product. In November, the company produced 12,000 units of product. The standard allowed for material was $60,000, and there was an unfavorable quantity variance of $2,500. ChemKing’s standard price for one unit of material is (E) a. $2.50 c. $5.00 b. $3.00 d. $6.00 CMA 1293 3- 22 CMA EXAMINATION QUESTIONS Page 12 of 138MANAGEMENT ADVISORY SERVICES STANDARD COSTS AND VARIANCE ANALYSIS Materials Quantity Variance 39. The standard usage for raw materials is 5 pounds at $4.00 per pound. ABC Company spent $13,940 in purchasing 3,400 pounds. ABC used 3,150 pounds to produce 600 units of finished product. The material quantity variance is (E) a. $340 unfavorable. c. $600 unfavorable. b. $400 unfavorable. d. $1,340 unfavorable. D, L & H 9e 36. Home Company manufactures tables with vinyl tops. The standard material cost for the vinyl used per Type-R table is $7.80 based on six square feet of vinyl at a cost of $1.30 per square foot. A production run of 1,000 tables in January resulted in usage of 6,400 square feet of vinyl at a cost of $1.20 per square foot, a total cost of $7,680. The quantity variance resulting from the above production run was: (E) A. $120 favorable. C. $520 unfavorable. B. $480 unfavorable. D. $640 favorable.
