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Standard Costing Quiz

Classic Company manufactures a cleaning solvent using two materials, skilled labor, and unskilled labor to produce 55-gallon drums. The document provides standard and actual amounts for materials used and labor hours worked, as well as purchase prices and wage rates. During the current month, Classic Company manufactured 500 drums. The summary includes calculations for total material and labor variances based on the information provided.

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Lhorene Hope Dueñas
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2K views2 pages

Standard Costing Quiz

Classic Company manufactures a cleaning solvent using two materials, skilled labor, and unskilled labor to produce 55-gallon drums. The document provides standard and actual amounts for materials used and labor hours worked, as well as purchase prices and wage rates. During the current month, Classic Company manufactured 500 drums. The summary includes calculations for total material and labor variances based on the information provided.

Uploaded by

Lhorene Hope Dueñas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Classic Company

Classic Company manufactures a cleaning solvent. The company employs both skilled and unskilled
workers. To produce one 55-gallon drum of solvent requires Materials A and B as well as skilled labor
and unskilled labor. The standard and actual material and labor information is presented below:

Standard:
Material A: 30.25 gallons @ $1.25 per gallon
Material B: 24.75 gallons @ $2.00 per gallon

Skilled Labor: 4 hours @ $12 per hour


Unskilled Labor: 2 hours @ $ 7 per hour

Actual:
Material A: 10,716 gallons purchased and used @ $1.50 per gallon
Material B: 17,484 gallons purchased and used @ $1.90 per gallon

Skilled labor hours: 1,950 @ $11.90 per hour


Unskilled labor hours: 1,300 @ $7.15 per hour
During the current month Classic Cleaning Company manufactured 500 55-gallon drums.

Round all answers to the nearest whole dollar.

What is the total material price variance?


a. $877 F
b. $877 U
c. $931 U
d. $931 F
ANS: C

What is the total material mix variance?


a. $3,596 F
b. $3,596 U
c. $4,864 F
d. $4,864 U
ANS: B

. What is the total material yield variance?


a. $1,111 U
b. $1,111 F
c. $2,670 U
d. $2,670 F
ANS: A

. What is the labor rate variance?


a. $0
b. $1,083 U
c. $2,583 U
d. $1,083 F
ANS: A
What is the labor mix variance?
a. $1,083 U
b. $2,588 U
c. $1,083 F
d. $2,588 F
ANS: C

.What is the labor yield variance?


a. $2,583 U
b. $2,583 F
c. $1,138 F
d. $1,138 U
ANS: A

The sum of the material mix and material yield variances equals
a. the material purchase price variance.
b. the material quantity variance.
c. the total material variance.
d. none of the above.

The sum of the labor mix and labor yield variances equals
a. the labor efficiency variance.
b. the total labor variance.
c. the labor rate variance.
d. nothing because these two variances cannot be added since they use different costs.

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