Answer Happy

Question 36 (2.5 points) Direct materials cost standard Direct materials effiency standard $1.75 per pound of paraffin 1.0 pound of paraffin per batch 62,400 pounds $102,960 Actual amount of paraffin purchased and used Actual cost of paraffin purchased and used Based on the above information and an actual production of 52,000 units, is the materials cost variance favorable or unfavorable? Favorable Unfavorable
$1.75 per pound of paraffin Direct materials cost standard Direct materials effiency standard Actual amount of paraffin purchased and used Actual cost of paraffin purchased and used 1.0 pound of paraffin per batch 62,400 pounds $102,960 Based on the information above and an actual production of 52,000 units, is the material efficiency variance favorable or unfavorable? Favorable Unfavorable
What would be a possible reason for a favorable direct labor variance? Production equipment breakdown New employees Increased training Employee vacations
What would be a possible reason for an unfavorable direct labor variance? Experienced employees Higher quality materials Increased training New employees
Which of the following would not be a possible cause of direct labor variance? Production equipment breakdown Low quality materials New employees Increase in material costs