Question

Circle the correct answer (2 points each) 11/21/2019 Name: 1. The standard number of hours that should have been worked to make 5.000 product is 6,000 direct labor hours and the actual number of direct labor hours worked was 6,300. Ir the dire labor rate variance was $3.1 Sunfavorable and the standard rate of pay was 9 per direct hour, what was the actual rate of pay for direct labor? a $8.50 per direct labor hour b. $7.50 per direct labor hour c. $9.50 per direct labor hour d. $9.00 per direct labor hour 2. Bono, Inc. manufactures a product that should use one kilogram (kg) of direct material per unit During 2019, Bono uses 24,000 kg of direct material that actually costs 596,000, and the direct materials price variance was $3,600 unfavorable. The standard direct material cost per unit of finished product was a. $7.70. b. $3.85. c. $4.15. d. $4.00. 3. Pastore Foods, Inc. makes pasta sauce in one-liter jars (units). A daily production run of 40,000 units should use direct materials (DM): 150,000 kg of tomatoes at 50.60 per kg. 400 liters of olive oil at $2.00 per liter, and other ingredients plus packaging that cost $0.60 per unit (jar). What is the standard DM cost per unit (jar) of pasta sauce? a. S2.87 b. $2.27 c. $2.25 d. S3.20 4. Angie's Diner makes a cheese omelet. What is the standard cost for one omelet, based on the following standard data for one omelet? Standard direct material: 2 eges at S0.15 per cer, and I slice of cheese at 50.23 per slice Standard direct labor: 0.15 hours at S10.00 per hour Standard factory (diner) overhead: 10.0% of direct labor cost 0.53 a. $1.95 b. S0.68 2.59 c. $3.53 d. S2.18 5. A favorable cost variance occurs when a. actual costs are more than standard costs b. standard costs are more than actual costs c. standard costs are less than actual costs d. variable costs are less than fixed costs

Answer 1

	Q1)	Direct Labor Price Variance = Actual Hours Worked * ( Standard RAte - Actual RAte)
				$3150 (U) = 6300 Hours * ($9 - Actual Rate)
				-3150 =56700 -6300* Actual Rate
				Actual Rate = $9.5 Per hour
		Therefore option "c" is correct.
	Q2)	Actual DM Cost Per Unit = $96000/24000
			=$4 per kg
		Direct Material Price Variance = Actual Kg * (Std Rate - Actual Rate)
			3600(U) = 24000 * (std rate -4)
			-3600 = 24000 std rate -96000
		Standard Rate = $3.85
		Therefore option "b" is correct.
	Q3)	Standard DM cost per unit
						Per unit
		Tomatoes				$       2.25
		(150000Kg/40000 units *0.6 per kg)
		Olive oil				$       0.02
		(400 litres/40000*$2 per liters)
		Others				$       0.60
		Total				$       2.87
		Therefore option "a" is correct.
	Q4)	Standard Cost
		Eggs				0.3
		(2*0.15)
		Slice				0.23
		(1*0.23)
		Direct Labor Cost				1.5
		(0.15*10)
		Factory Overhead				0.15
		Total				2.18
		Therefore option "d" is correct.
	5)	correct optio = b