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• 38.

The materials price variance for May is:

• A.

\$360 F

• b.

\$360 U

• c.

\$740 F

• d.

\$740 U

Materials price variance = (Actual quantity purchased × Actual price) - (Purchase quantity × Standard price) = \$9,540 - (3,600 × \$2.75) = \$360 favorable

• 39.

The materials quantity variance for May is:

• a.

\$1,650 F

• b.

\$1,650 U

• C.

\$550 U

• d.

\$720 F

Standard quantity = Standard quantity per unit × Actual output = 2 × 1,500 = 3,000 Materials quantity variance = Standard price × (Actual quantity - Standard quantity) = \$2.75 × (3,200 - 3,000) = \$550 unfavorable

• 40.

The labor rate variance for May is:

• a.

\$225 F

• b.

\$225 U

• c.

\$450 F

• D.

\$450 U

Labor rate variance = (Actual hours × Actual rate) - (Actual hours × Standard rate) = \$5,550 - (340 × \$15) = \$450 unfavorable

• 41.

The labor efficiency variance for May is:

• a.

\$600 F

• B.

\$600 U

• c.

\$515 U

• d.

\$515 F

Standard hours = Standard hours per unit × Actual output = 0.2 × 1,500 = 300 Labor efficiency variance = Standard rate × (Actual hours - Standard hours) = \$15 × (340 - 300) = \$600 unfavorable

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