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CMA Part 1 – Section C – 03 – Manufacturing Input Variances — Direct Materials – Quiz 03

1. Question ID: CMA.P1.C.MIVDM.03.10

A company reported a significant material quantity variance for the month of January. All of the following are possible explanations for this variance except
A.  
B.  
C.  
D.  

Question 1 of 10

2. Question ID: CMA.P1.C.MIVDM.03.03

Arrow Industries employs a standard cost system in which direct materials inventory is carried at standard cost. Arrow has established the following standards for the prime costs of one unit of product.

 Standard
Quantity
Standard
Price
Standard
Cost
Direct materials8 pounds$1.80 per pound$14.40
Direct labor.25 hours$8.00 per hour    2.00
   $16.40

During November, Arrow purchased 160,000 pounds of direct materials at a total cost of $304,000. The total factory wages for November were $42,000, 90% of which were for direct labor. Arrow manufactured 19,000 units of product during November using 142,500 pounds of direct materials and 5,000 direct labor hours.

The direct materials usage (quantity) variance for November is

A.  
B.  
C.  
D.  

Question 2 of 10

3. Question ID: CMA.P1.C.MIVDM.03.08

Blaster Inc., a manufacturer of portable radios, purchases the components from subcontractors to use to assemble into a complete radio. Each radio requires three units each of Part XBEZ52, which has a standard cost of $1.45 per unit. During May, Blaster experienced the following with respect to Part XBEZ52.

 Units
Purchases ($18,000)12,000
Consumed in manufacturing10,000
Radios manufactured3,000

During May, Blaster Inc. incurred a purchase price variance of

A.  
B.  
C.  
D.  

Question 3 of 10

4. Question ID: CMA.P1.C.MIVDM.03.01

Jackson Industries employs a standard cost system in which direct materials inventory is carried at standard cost. Jackson has established the following standards for the prime costs of one unit of product.

 Standard
Quantity
Standard
Price
Standard
Cost
Direct materials5 pounds$3.60/pound$18.00
Direct labor1.25 hours12.00/hour  15.00
   $33.00

During May, Jackson purchased 125,000 pounds of direct materials at a total cost of $475,000. The total factory wages for May were $364,000, 90% of which were for direct labor. Jackson manufactured 22,000 units of product during May using 108,000 pounds of direct materials and 28,000 direct labor hours.

The direct materials usage (quantity) variance for May is

A.  
B.  
C.  
D.  

Question 4 of 10

5. Question ID: CMA.P1.C.MIVDM.03.07

Which of the following is least likely to cause an unfavorable materials quantity (usage) variance?
A.  
B.  
C.  
D.  

Question 5 of 10

6. Question ID: CMA.P1.C.MIVDM.03.05

A company manufactures one product and has a standard cost system. In April the company had the following experience:

 Direct MaterialsDirect Labor
Actual $/unit of input (lbs. & hrs.)$28$18
Standard price/unit of input$24$20
Standard inputs allowed per unit of output104
Actual units of input190,00078,000
Actual units of output20,00020,000

The direct materials price variance for April is

A.  
B.  
C.  
D.  

Question 6 of 10

7. Question ID: CMA.P1.C.MIVDM.03.06

A manufacturer has the following direct materials standard for one of its products.

  • Direct materials: 3 pounds @ $1.60/pound = $4.80

The company records all inventory at standard cost. Data for the current period regarding the manufacturer’s budgeted and actual production for the product as well as direct materials purchases and issues to production for manufacture of the product are presented as follows.

  • Budgeted production for the period: 8,000 units
  • Actual production for the period: 7,500 units

Direct materials purchases:

  • Pounds purchased: 25,000 pounds
  • Total cost: $38,750

Direct materials issued in production: 23,000 pounds

The materials quantity variance for the current period is

A.  
B.  
C.  
D.  

Question 7 of 10

8. Question ID: CMA.P1.C.MIVDM.03.09

Jackson Industries employs a standard cost system in which direct materials inventory is carried at standard cost. Jackson has established the following standards for the prime costs of one unit of product.

 Standard
Quantity
Standard
Price
Standard
Cost
Direct materials5 pounds$3.60/pound$18.00
Direct labor1.25 hours12.00/hour  15.00
   $33.00

During May, Jackson purchased 125,000 pounds of direct materials at a total cost of $475,000. The total factory wages for May were $364,000, 90% of which were for direct labor. Jackson manufactured 22,000 units of product during May using 108,000 pounds of direct materials and 28,000 direct labor hours.

The purchase price variance for the direct materials acquired by Jackson Industries during May is

A.  
B.  
C.  
D.  

Question 8 of 10

9. Question ID: CMA.P1.C.MIVDM.03.02

Arrow Industries employs a standard cost system in which direct materials inventory is carried at standard cost. Arrow has established the following standards for the prime costs of one unit of product.

 Standard
Quantity
Standard
Price
Standard
Cost
Direct materials8 pounds$1.80 per pound$14.40
Direct labor.25 hours$8.00 per hour    2.00
   $16.40

During November, Arrow purchased 160,000 pounds of direct materials at a total cost of $304,000. The total factory wages for November were $42,000, 90% of which were for direct labor. Arrow manufactured 19,000 units of product during November using 142,500 pounds of direct materials and 5,000 direct labor hours.

The direct materials purchase price variance for November is:

A.  
B.  
C.  
D.  

Question 9 of 10

10. Question ID: CMA.P1.C.MIVDM.03.04

A company manufactures one product and has a standard cost system. In April the company had the following experience:

 Direct MaterialsDirect Labor
Actual $/unit of input (lbs. & hrs.)$28$18
Standard price/unit of input$24$20
Standard inputs allowed per unit of output104
Actual units of input190,00078,000
Actual units of output20,00020,000

The direct materials efficiency variance for April is:

A.  
B.  
C.  
D.  

Question 10 of 10


 

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