A favorable direct materials price variance occurs when:

Related MCQs

• During the month of December actual direct labor cost amounted to Rs. 39,550, the standard direct labor rate was Rs.10 per hour and the direct labor rate variance amounted toRs.450 favorable. The actual direct labor hours worked was:
• During the month of January, the standard cost of actual hours worked amounted to Rs.25, 000, the standard direct labor rate was Rs.10 per hour and the direct labor efficiency variance amounted to Rs.1, 000 favorable. The standard hours allowed for actual production were:
• Which of the following is a correct formula for computing direct materials price variance?
• which of the following cannot be a reason of unfavorable direct materials price variance?
• Which of the following cannot be a reason of unfavorable direct materials quantity variance?
• What would be the most likely cause of an unfavourable labour rate variance together with a favourable labour efficiency variance?
• Which of the following is not likely to be a reason of unfavorable direct labor efficiency variance?
• Which of the following is not likely to be a reason of unfavorable direct labor rate variance?
• A 'direct' cost is a cost that is classified by:
• The following information belongs to John Manufacturing Company that uses a standard costing system: • Basic wage rate:Rs.12 per hour • Fringe benefits: Rs. 2 per hour • Basic time: 2 hours per unit • Allowance for down time: 0.3 hours per unit • Allowance for brakes: 0.2 hours per unit Based on the above information, what is the standard direct labor cost per unit?