QUESTION 5 The actual cost of raw materials is $10.50 per pound. The budgeted cost of raw materials is $11.25 per pound. During the current period, 10,000 pounds were used in the production process. The standard usage for actual units produced is 9,800 pounds. Calculate the material price variances O$7,500 unfavorable O $7,350 favorable O $7,350 unfavorable $7,500 favorable

Question I – Variances    LAR Chemical Company manufactures a wide variety of chemical compounds and liquids for industrial uses. The standard mix for November’s production of 40,000 litres of Product “A” and the budgeted costs for that mix, are as follows:   Liquid Chemical Quantity (in litres) Cost (per litre) Total Cost Maxan Xulon Cralyn 8,000 24,000 18,000 $2.00 $.75 $1.00 $16,000 18,000 18,000   The actual quantities of direct materials and the cost of the materials placed in production during November to product Product “A” were as follows (all materials purchased were used):   Liquid Chemical Quantity (in litres) Total Cost Maxan Xulon Cralyn 8,480 25,200 18,520 52,200 $17,384 17,640  16,686 $51,710   A total of 40,000 good litres of Product “A” were produced during November.   REQUIRED:   Calculate the direct materials efficiency, mix, and yield variances for each raw material.

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QUESTION 2 The following data have been provided by Mathews Corporation: Budgeted production 6.900 units Standard machine-hours per unit 9.4 machine-hours Standard lubricants rate $1.20 per machine-hour Standard supplies rate $1.00 per machine-hour Actual production 7,000 units Actual machine-hours (total) 66.230 machine-hours Actual lubricants cost (total) $78.100 Actual supplies cost (total) $66.536 Lubricants and supplies are both elements of variable manufacturing overhead. The variable overhead rate variance for supplies is closest to: $306 U $736 U $430 U $736 F