53.If the actual cost per pound of direct material is less than the standard cost per pound, there is:
A. A favorable materials price variance.
B. An unfavorable materials price variance.
C. A favorable materials quantity variance.
D. A favorable total materials variance.
54.The calculation of the labor rate variance is:
A. Standard rate multiplied by (standard hours minus actual hours).
B. Standard hours multiplied by (standard rate minus actual rate).
C. Actual labor hours multiplied by (standard rate minus actual rate).
D. Actual rate multiplied by (standard hours minus actual hours).
55.If the actual amount of direct materials used in production was less than the standard amount allowed for units produced, there was:
A. A favorable materials price variance.
B. A favorable total materials variance.
C. A favorable materials quantity variance.
D. An unfavorable materials quantity variance.
56.If the hourly wage rate actually paid during January is higher than the standard rate, the result is:
A. An unfavorable labor rate variance.
B. A favorable labor rate variance.
C. An unfavorable labor efficiency variance.
D. A favorable total labor variance.
57.The calculation of the labor efficiency variance is:
A. Standard hourly rate multiplied by (standard hours minus actual hours).
B. Standard hours multiplied by (standard rate minus actual rate).
C. Actual labor hours multiplied by (standard rate minus actual rate).
D. Actual rate multiplied by (standard hours minus actual hours).
58.Using more direct labor hours for units produced than the amount allowed by the standard results in:
A. An unfavorable total labor variance.
B. An unfavorable labor efficiency variance, regardless of the wage rate paid to employees.
C. An unfavorable labor efficiency variance only if the wage rate is higher than standard cost allowed.
D. A favorable labor rate variance, because the hourly wage rate is automatically reduced when workers operate less efficiently.
59.Refer to the information above. James's materials price variance for June is:
A. $3,150 unfavorable.
B. $3,150 favorable.
C. $3,210 unfavorable.
D. $3,210 favorable.
60.Refer to the information above. The materials quantity variance for James's June operations is:
A. $3,150 favorable.
B. $3,210 unfavorable.
C. $1,480 unfavorable.
D. $3,210 favorable.
61.Refer to the information above. The journal entry to record the cost of direct materials used in June includes each of the following
except:
A. A debit to Work in Process Inventory of $77,700.
B. A credit to Materials Price Variance of $3,210.
C. A credit to Direct Materials Inventory of $77,700.
D. A debit to Materials Quantity Variance of $1,480.
62.Greenleaf's flexible budget for June, based on actual output, called for the use of 10,000 square feet of materials at a standard cost of $9.90 per square foot. Company records show that the actual price paid for the materials used in June was $9.70 per square foot, and that the direct materials price variance for the month was $2,090 favorable. The materials quantity variance for Greenleaf's June operations was:
A. $1,000 favorable.
B. $4,455 unfavorable.
C. $4,365 favorable.
D. Impossible to determine from the data given.