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1
Ventolin Company employs a standard cost system in which direct materials inventory is carried at standard cost. Ventolin has established the following standards for the prime costs of one unit of product:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073048836/346044/08_q01.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (9.0K)</a>

During June, Ventolin purchased 165,000 pounds of direct material at a total cost of $1,171,500. The total factory wages for June were $800,000, 90 percent of which were for direct labor. Ventolin manufactured 25,000 units of product during June using 151,000 pounds of direct material and 32,000 direct labor hours. The price variance for the direct material acquired by the company during June is:
A)$15,100 favorable.
B)$15,100 unfavorable.
C)$16,500 favorable.
D)$16,500 unfavorable.

2
Ventolin Company employs a standard cost system in which direct materials inventory is carried at standard cost. Ventolin has established the following standards for the prime costs of one unit of product:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073048836/346044/08_q02.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (9.0K)</a>

During June, Ventolin purchased 165,000 pounds of direct material at a total cost of $1,171,500. The total factory wages for June were $800,000, 90 percent of which were for direct labor. Ventolin manufactured 25,000 units of product during June using 151,000 pounds of direct material and 32,000 direct labor hours. (Note that this is the same data that was provided for the previous question.) The direct material quantity variance for June is:
A)$7,000 favorable.
B)$7,000 unfavorable.
C)$7,100 favorable.
D)$7,100 unfavorable.

3
Ventolin Company employs a standard cost system in which direct materials inventory is carried at standard cost. Ventolin has established the following standards for the prime costs of one unit of product:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073048836/346044/08_q03.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (9.0K)</a>

During June, Ventolin purchased 165,000 pounds of direct material at a total cost of $1,171,500. The total factory wages for June were $800,000, 90 percent of which were for direct labor. Ventolin manufactured 25,000 units of product during June using 151,000 pounds of direct material and 32,000 direct labor hours. (Note that this is the same data that was provided for the previous question.) The direct labor rate variance for June is:
A)$16,000 favorable.
B)$16,000 unfavorable.
C)$96,000 favorable.
D)$96,000 unfavorable.

4
Ventolin Company employs a standard cost system in which direct materials inventory is carried at standard cost. Ventolin has established the following standards for the prime costs of one unit of product:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073048836/346044/08_q04.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (9.0K)</a>

During June, Ventolin purchased 165,000 pounds of direct material at a total cost of $1,171,500. The total factory wages for June were $800,000, 90 percent of which were for direct labor. Ventolin manufactured 25,000 units of product during June using 151,000 pounds of direct material and 32,000 direct labor hours. (Note that this is the same data that was provided for the previous question.) The direct labor efficiency variance for June is:
A)$11,000 favorable.
B)$11,000 unfavorable.
C)$11,250 favorable.
D)$11,250 unfavorable.





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