Page 279 - P1 Integrated Workbook STUDENT 2018
P. 279
Supplementary objective test questions
CHAPTERS 7 AND 8 – STANDARD COSTING AND VARIANCES
3.1 The following details have been extracted from the standard cost card in
respect of direct materials:
10 kg @ $6/kg = $60 per unit
Budgeting production in Month 4 was 8,000 units
The following details relate to actual materials purchased and issued to
production during Month 4 when actual production was 8,700 units:
Materials purchased: 90,000 kg costing $531,000
Materials issued to production: 88,000 kg
What is the value of the materials efficiency variance?
A $6,000 favourable
B $6,000 adverse
C $18,000 favourable
D $18,000 adverse
3.2 The following details have been extracted from a standard cost card for
Product X:
Direct labour: 6 hours @ $25 per hour
During Month 3, the budgeted production was 4,000 units of Product X and the
actual production was 4,250 units of Product X. Actual hours worked and paid
were 26,350 and the actual direct labour cost amounted to $685,100.
The adverse labour rate variance for Month 3 is $_________________
(Your answer should be rounded down to the nearest $)
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