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| 1 | |
Eltham Company purchased 45 000 litres of a chemical used as an input into the production of a solvent at an actual price of $2.50 per litre when the standard price per litre was $2.80. The entry to the direct material price variance temporary ledger account is: |
| | A) | $13 500 debit |
| | B) | $13 500 credit |
| | C) | $126 000 debit |
| | D) | $126 000 credit |
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| 2 | |
If Eltham Company used 5000 hours of direct labour in the production of a solvent at an actual labour rate of $15 per hour and the standard price hourly rate was $14.50, the entry to the direct labour rate variance would be: |
| | A) | $2500 debit |
| | B) | $2500 credit |
| | C) | $72 500 debit |
| | D) | $72 500 credit |
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| 3 | |
Chic Shoes determined that the following variances occurred during the month of July: Direct labour rate variance | $4 000 favourable | Direct labour efficiency variance | $5 800 unfavourable |
Chic Shoes made 1600 pairs of shoes during the month using 2000 direct labour hours. The standard direct labour rate per hour is $14.50. The actual rate per hour was: |
| | A) | $16.50 |
| | B) | $15.625 |
| | C) | $12.50 |
| | D) | $14.50 |
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| 4 | |
Chic Shoes determined that the following variances occurred during the month of July: Direct labour rate variance | $4 000 favourable | Direct labour efficiency variance | $5 800 unfavourable |
Chic Shoes made 1600 pairs of shoes during the month using 2000 direct labour hours. The standard direct labour rate per hour is $14.50. The standard number of direct labour hours required to produce a pair of shoes was: |
| | A) | 1.25 |
| | B) | 1 |
| | C) | 0.75 |
| | D) | 1.5 |
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| 5 | |
A direct material quantity variance cannot be caused by: |
| | A) | inexperienced employees |
| | B) | poor quality raw materials |
| | C) | an outdated direct material quantity standard |
| | D) | producing fewer finished units than originally planned |
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| 6 | |
On 1 May, Gemini Textile Company began the manufacture of a new high-tech fabric known as ‘Tacsile’. The company installed a standard costing system to account for manufacturing costs. The standard costs for a unit (a metre) of Tacsile follow: Direct materials-yarn (3 kg @ $5.00 per kg) | $15.00 | Direct labour (0.5 hour at $20 per hour) | 10.00 | Manufacturing overhead (75% of direct manufacturing labour costs) | 7.50 | | | ______ |
| $32.50 | | | ______ |
The following information was obtained from Gemini’s records for the month of May: Extract from Gemini’s general ledger | Debit | Credit | Sales |
| $125 000 | Accounts payable control (for May’s purchases of direct materials) | $68 250 |
| Direct materials price variance | 3 250 |
| Direct materials quantity variance | 2 500 |
| Direct labour rate variance | 1 900 |
| Direct labour efficiency variance |
| 2 000 |
As a management accounting student, you are aware that the direct materials and direct labour variances recorded in the general ledger as debits are unfavourable variances and those recorded as credits are favourable variances.
The actual production for May was 4000 metres of Tacsile, and May’s actual sales were 2500 metres.
The amount shown above for direct materials price variance applies to materials purchased during May. There was no beginning inventory of raw materials on May 1.
The number of standard kilograms of direct materials that were allowed to produce the actual output was:
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| | A) | 13 000 |
| | B) | 12 500 |
| | C) | 12 000 |
| | D) | 11 500 |
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| 7 | |
On 1 May, Gemini Textile Company began the manufacture of a new high-tech fabric known as ‘Tacsile’. The company installed a standard costing system to account for manufacturing costs. The standard costs for a unit (a metre) of Tacsile follow: Direct materials-yarn (3 kg @ $5.00 per kg) | $15.00 | Direct labour (0.5 hour at $20 per hour) | 10.00 | Manufacturing overhead (75% of direct manufacturing labour costs) | 7.50 | | | ______ |
| $32.50 | | | ______ |
The following information was obtained from Gemini’s records for the month of May: Extract from Gemini’s general ledger | Debit | Credit | Sales |
| $125 000 | Accounts payable control (for May’s purchases of direct materials) | $68 250 |
| Direct materials price variance | 3 250 |
| Direct materials quantity variance | 2 500 |
| Direct labour rate variance | 1 900 |
| Direct labour efficiency variance |
| 2 000 |
As a management accounting student, you are aware that the direct materials and direct labour variances recorded in the general ledger as debits are unfavourable variances and those recorded as credits are favourable variances.
The actual production for May was 4000 metres of Tacsile, and May’s actual sales were 2500 metres.
The amount shown above for direct materials price variance applies to materials purchased during May. There was no beginning inventory of raw materials on May 1.
The number of kilograms of direct material used in the production process was:
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| | A) | 13 000 |
| | B) | 12 500 |
| | C) | 12 000 |
| | D) | 11 500 |
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| 8 | |
On 1 May, Gemini Textile Company began the manufacture of a new high-tech fabric known as ‘Tacsile’. The company installed a standard costing system to account for manufacturing costs. The standard costs for a unit (a metre) of Tacsile follow: Direct materials-yarn (3 kg @ $5.00 per kg) | $15.00 | Direct labour (0.5 hour at $20 per hour) | 10.00 | Manufacturing overhead (75% of direct manufacturing labour costs) | 7.50 | | | ______ |
| $32.50 | | | ______ |
The following information was obtained from Gemini’s records for the month of May: Extract from Gemini’s general ledger | Debit | Credit | Sales |
| $125 000 | Accounts payable control (for May’s purchases of direct materials) | $68 250 |
| Direct materials price variance | 3 250 |
| Direct materials quantity variance | 2 500 |
| Direct labour rate variance | 1 900 |
| Direct labour efficiency variance |
| 2 000 |
As a management accounting student, you are aware that the direct materials and direct labour variances recorded in the general ledger as debits are unfavourable variances and those recorded as credits are favourable variances.
The actual production for May was 4000 metres of Tacsile, and May’s actual sales were 2500 metres.
The amount shown above for direct materials price variance applies to materials purchased during May. There was no beginning inventory of raw materials on May 1. The number of kilograms of direct materials purchased during May was:
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| | A) | 13 000 |
| | B) | 12 500 |
| | C) | 12 000 |
| | D) | 11 500 |
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| 9 | |
On 1 May, Gemini Textile Company began the manufacture of a new high-tech fabric known as ‘Tacsile’. The company installed a standard costing system to account for manufacturing costs. The standard costs for a unit (a metre) of Tacsile follow: Direct materials-yarn (3 kg @ $5.00 per kg) | $15.00 | Direct labour (0.5 hour at $20 per hour) | 10.00 | Manufacturing overhead (75% of direct manufacturing labour costs) | 7.50 | | | ______ |
| $32.50 | | | ______ |
The following information was obtained from Gemini’s records for the month of May: Extract from Gemini’s general ledger | Debit | Credit | Sales |
| $125 000 | Accounts payable control (for May’s purchases of direct materials) | $68 250 |
| Direct materials price variance | 3 250 |
| Direct materials quantity variance | 2 500 |
| Direct labour rate variance | 1 900 |
| Direct labour efficiency variance |
| 2 000 |
As a management accounting student, you are aware that the direct materials and direct labour variances recorded in the general ledger as debits are unfavourable variances and those recorded as credits are favourable variances.
The actual production for May was 4000 metres of Tacsile, and May’s actual sales were 2500 metres.
The amount shown above for direct materials price variance applies to materials purchased during May. There was no beginning inventory of raw materials on May 1. The number of standard direct labour hours that were allowed to produce the actual output was:
|
| | A) | 4000 |
| | B) | 2000 |
| | C) | 1900 |
| | D) | 2100 |
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| 10 | |
On 1 May, Gemini Textile Company began the manufacture of a new high-tech fabric known as ‘Tacsile’. The company installed a standard costing system to account for manufacturing costs. The standard costs for a unit (a metre) of Tacsile follow: Direct materials-yarn (3 kg @ $5.00 per kg) | $15.00 | Direct labour (0.5 hour at $20 per hour) | 10.00 | Manufacturing overhead (75% of direct manufacturing labour costs) | 7.50 | | | ______ |
| $32.50 | | | ______ |
The following information was obtained from Gemini’s records for the month of May: Extract from Gemini’s general ledger | Debit | Credit | Sales |
| $125 000 | Accounts payable control (for May’s purchases of direct materials) | $68 250 |
| Direct materials price variance | 3 250 |
| Direct materials quantity variance | 2 500 |
| Direct labour rate variance | 1 900 |
| Direct labour efficiency variance |
| 2 000 |
As a management accounting student, you are aware that the direct materials and direct labour variances recorded in the general ledger as debits are unfavourable variances and those recorded as credits are favourable variances.
The actual production for May was 4000 metres of Tacsile, and May’s actual sales were 2500 metres.
The amount shown above for direct materials price variance applies to materials purchased during May. There was no beginning inventory of raw materials on May 1. The number of direct labour hours that were used to produce the actual output was:
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| | A) | 4000 |
| | B) | 2000 |
| | C) | 1900 |
| | D) | 2100 |
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