b. $400 unfavorable. d. $1,340 unfavorable. D, L & H 9e 40.
Last month 75,000 pounds of direct material
were purchased and 71,000 pounds were used. If the actual purchase price per pound was $0.50 more
than the standard purchase price per pound, then the material price variance was: (E) a. $2,000 F. c.
$37,500 U. b. $37,500 F. d. $35,500 U. G & N 9e 42. PRECISION Instruments established a standard cost
for raw materials at P25 per unit. During the period just ended, a total of 10,000 units were purchased
of which 50% was at P24.70 each, 20% was at P24.90 each, and the balance was at P25.60 each. The raw
materials cost variance is a favorable (an unfavorable) (M) a. P100 c. P(100) b. P900 d. P(900) RPCPA
1097 43. The following materials standards have been established for a particular product: Standard
quantity per unit of output .. 8.3 grams Standard price ........................ $19.15 per gram The following
data pertain to operations concerning the product for the last month: Actual materials
purchased ............ 7,500 grams Actual cost of materials purchased .... $141,375 Actual materials used in
production ... 7,100 grams Actual output ......................... 700 units What is the materials price variance
for the month? (E) a. $2,250 F c. $24,317 U b. $7,540 U d. $7,660 U G & N 9e 38. Perkins Company,
which has a standard cost system, had 500 pounds of raw material X in its inventory at June 1,
purchased in May for $1.20 per pound and carried at a standard cost of $1.00 per pound. The following
information pertains to raw material X for the month of June: Actual pounds purchased 1,400 Actual
pounds used 1,500 Standard pounds allowed for actual production 1,300 Standard cost per pound $1.00
Actual cost per pound $1.10 The unfavorable materials purchase price variance for raw material X for
June was: A. $ 0. C. $140. B. $130. D. $150. G & N 10e 40. The following materials standards have been
established for a particular product: Standard quantity per unit of output 5.3 meters Standard price
$17.20 per meter The following data pertain to operations concerning the product for the last month:
Actual materials purchased 8,100 meters Actual cost of materials purchased $141,345 Actual materials
used in production 7,600 meters Actual output 1,400 units What is the materials price variance for the
month? A. $3,141 U C. $8,600 U B. $2,025 U D. $8,725 U G & N 10e Questions 1 & 2 are based on the
following information. H & M The Max Company has developed the following standards for one of its
products: Direct materials: 15 pounds x $16 per pound Direct labor: 4 hours x $24 per hour Variable
manufacturing overhead: 4 hours x $14 per hour The following activity occurred during the month of
October: Materials purchased: 10,000 pounds costing $170,000 Materials used: 7,200 pounds Units
produced: 500 units Direct labor: 2,300 hours at $23.60/hour Actual variable manufacturing overhead:
$30,000 The company records materials price variances at the time of purchase. CMA EXAMINATION
QUESTIONS Page 10 of 138MANAGEMENT ADVISORY SERVICES STANDARD COSTS AND VARIANCE
ANALYSIS 28 . The variable standard cost per unit is (E) a. $392 c. $296 b. $336 d. $152 29 . The direct
materials price variance is (E) a. $50,000 favorable c. $10,000 unfavorable b. $50,000 unfavorable d.
$10,000 favorable Based on Quantity Purchased and Used 30 . The standard direct material cost to
produce a unit of Lem is 4 meters of material at $2.50 per
