A small component is purchased for the use in the production of a major product. The standard price of the component is $0.85. During a recent period, 6,800 units of the small component were purchased and the materials price variance was $544 unfavorable.

12. The following materials standards have been established for a particular product:

What is the materials price variance for the month?
a. $6,250 U
B. $4,030 U
c. $8,679 U
d. $6,575 U

 

13. A small component is purchased for the use in the production of a major product. The standard price of the component is $0.85. During a recent period, 6,800 units of the small component were purchased and the materials price variance was $544 unfavorable. The standard number of units of the small component allowed for the actual output of the period was 5,440 units. What was the actual purchase price per unit?
a. $0.75
b. $0.77
C. $0.93
d. $0.95

 

14. Mayall Corporation is developing standards for its products. Each unit of output of the product requires 0.92 kilogram of a particular input. The allowance for waste and spoilage is 0.02 kilogram of this input for each unit of output. The allowance for rejects is 0.11 kilogram of this input for each unit of output. The standard quantity in kilograms of this input per unit of output should be:
a. 0.90
b. 0.92
c. 0.79
D. 1.05

 

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