Reference no: EM13599715

1) Agnew Corporation uses a standard cost system. The following information was provided for the period that just ended:

• Actual price per kilogram $1.76
• Actual kilograms of material used 61,500
• Actual hourly labor rate $20.60
• Actual hours of production 8,850
• Standard price per kilogram $1.80
• Standard kilograms per completed unit 5 kilograms
• Standard hourly labor rate $20.00
• Standard time per completed unit 3/4 hr.
• Actual total factory overhead $64,500
• Fixed factory overhead $30,000
• Standard fixed factory overhead rate $3.00 per labor hour
• Standard variable factory overhead rate $5.00 per labor hour
• Maximum plant capacity 10,000 hours
• Plant operated during the period 9,000 hours
• Units completed during the period 12,000

The direct materials quantity variance is:

a. $2,700 favorable
b. $2,460 favorable
c. $2,460 unfavorable
d. $2,700 unfavorable

2) Frogue Corporation uses a standard cost system. The following information was provided for the period that just ended:

• Actual price per kilogram $3.00
• Actual kilograms of material used 31,000
• Actual hourly labor rate $18.10
• Actual hours of production 4,900 labor hours
• Standard price per kilogram $2.80
• Standard kilograms per completed unit 6 kilograms
• Standard hourly labor rate $18.00
• Standard time per completed unit 1 hr.
• Actual total factory overhead $34,900
• Fixed factory overhead $18,000
• Standard fixed factory overhead rate $1.20 per labor hour
• Standard variable factory overhead rate $3.80 per labor hour
• Maximum plant capacity 15,000 hours
• Plant operated during the period 10,000 hours
• Units completed during the period 5,000

The variable factory overhead controllable variance is:

a. $6,000 favorable
b. $2,100 favorable
c. $2,100 unfavorable
d. $6,000 unfavorable