Reference no: EM132562643

Question 1: Fantastic Diapers planned to make 4,000 batches but only made 3,000 batches this month. According to the plan, each batch needs 45 minutes of direct labor, which is paid $12.50 per hour, including benefits. Payroll records showed that 2,100 labor hours were worked and that $27,300 was paid. Which is true?

The direct labor price variance is $1,050 unfavorable

The direct labor price variance is $1,125 unfavorable

The direct labor efficiency variance is $1,950 favorable

The direct labor efficiency variance is $1,950 unfavorable

Question 2: Perfect Foods (PF) manufactures pumpkin scones. For January 2020, it budgeted to purchase and use 15,000 kgs of pumpkin at $0.9 per kg. Actual purchases and usage for January 2020 were 15,750 kg at $0.84 per kg. It budgeted for 60,000 pumpkin scones. Actual output was 58,275 pumpkin scones. Which of the following statements is TRUE in this case?

Direct materials price variances is unfavorable because the actual output volume is smaller than the budgeted output volume.

Direct material efficiency variances do not depend on the difference between the actual and budged output volume.

The purchasing manager is responsible for direct material efficiency variances.

PF was efficient in using its pumpkin to produce their scones.

Question 3: POR has the following information with regard to capacity. Theoretical capacity is 100,000 units, practical capacity is 80,000 units, normal capacity is 75,000 units, and the current period master-budget capacity is 70,000 units. During the current period the actual level achieved was 72,000 units. If the fixed manufacturing costs for the period were budgeted at $560,000 and the firm uses master-budget capacity to determine its overhead rate, what would the production volume variance be for the current period?

$12,000 Unfavorable

$12,000 Favorable

$16,000 Unfavorable

$16,000 Favorable