Interactive workbook: Multiple-choice-questions 13.3 - Introduction to Accounting 2e Student Resources

. Bill and Ben make planters. The standard cost card for large planters is as follows:

Revenue	£
Standard selling price	70.00
Standard costs and inputs per planter
Materials: clay @ £0.60 per kilo	16.20
Materials: paint @ £5 per litre	3.00
Direct labour @ £10 per hour	10.00
Variable overhead @ £3.20/labour hour	3.20
Fixed overhead @ £15 per labour hour	15.00
Total costs	47.40
Standard profit per planter	22.60
Annual sales (number of planters)	6,000
April: projected sales (number of planters)	800

Actual sales information for large planters for April:
Actual production and sales of large planters: 900
Total revenue from the sale of large planters during April: £64,800
Based on the above standard costing data and information on actual outcomes, what is the sales price variance of large planters in April?

£1,800 favourable

£1,800 unfavourable

£1,600 unfavourable

£1,600 favourable

. Bill and Ben make planters. The standard cost card for large planters is as follows:

Revenue	£
Standard selling price	70.00
Standard costs and inputs per planter
Materials: clay @ £0.60 per kilo	16.20
Materials: paint @ £5 per litre	3.00
Direct labour @ £10 per hour	10.00
Variable overhead @ £3.20/labour hour	3.20
Fixed overhead @ £15 per labour hour	15.00
Total costs	47.40
Standard profit per planter	22.60
Annual sales (number of planters)	6,000
April: projected sales (number of planters)	800

Actual sales information for large planters for April:
Actual production and sales of large planters: 900
Total revenue from the sale of large planters during April: £64,800
Based on the above standard costing data and information on actual outcomes, what is the sales volume variance for sales of large planters in April?

£2,260 favourable

£2,460 favourable

£3,760 favourable

£3,960 favourable

. Bill and Ben make planters. The standard cost card for medium planters is as follows:

Revenue	£
Standard selling price	50.00
Standard costs and inputs per planter
Materials: clay @ £0.60 per kilo	8.40
Materials: paint @ £5 per litre	2.00
Direct labour @ £10 per hour	7.50
Variable overhead @ £3.20/labour hour	2.40
Fixed overhead @ £15 per labour hour	11.25
Total costs	31.55
Standard profit per planter	18.45
Annual sales (number of planters)	8,000
April: projected sales (number of planters)	1,000

Actual sales information for medium planters for April:
Actual production and sales of medium planters: 1,100
Total revenue from the sale of medium planters during April: £52,800
Based on the above standard costing data and information on actual outcomes, what is the sales price variance of medium planters in April?

£2,000 favourable

£2,000 unfavourable

£2,200 favourable

£2,200 unfavourable

. Bill and Ben make planters. The standard cost card for medium planters is as follows:

Revenue	£
Standard selling price	50.00
Standard costs and inputs per planter
Materials: clay @ £0.60 per kilo	8.40
Materials: paint @ £5 per litre	2.00
Direct labour @ £10 per hour	7.50
Variable overhead @ £3.20/labour hour	2.40
Fixed overhead @ £15 per labour hour	11.25
Total costs	31.55
Standard profit per planter	18.45
Annual sales (number of planters)	8,000
April: projected sales (number of planters)	1,000

Actual sales information for medium planters for April:
Actual production and sales of medium planters: 1,100
Total revenue from the sale of medium planters during April: £52,800
Based on the above standard costing data and information on actual outcomes, what is the sales volume variance for sales of medium planters in April?

£1,845 favourable

£2,970 favourable

£3,010 favourable

£3,210 favourable

. Bill and Ben make planters. The standard cost card for small planters is as follows:

Revenue	£
Standard selling price	30.00
Standard costs and inputs per planter
Materials: clay @ £0.60 per kilo	4.40
Materials: paint @ £5 per litre	1.00
Direct labour @ £10 per hour	5.00
Variable overhead @ £3.20/labour hour	1.60
Fixed overhead @ £15 per labour hour	7.50
Total costs	19.90
Standard profit per planter	10.10
Annual sales (number of planters)	10,000
April: projected sales (number of planters)	1,500

Actual sales information for small planters for April:
Actual production and sales of small planters: 1,300
Total revenue from the sale of small planters during April: £42,900
Based on the above standard costing data and information on actual outcomes, what is the sales price variance of small planters in April?

£3,900 unfavourable

£3,900 favourable

£600 unfavourable

£600 favourable

. Bill and Ben make planters. The standard cost card for small planters is as follows:

Revenue	£
Standard selling price	30.00
Standard costs and inputs per planter
Materials: clay @ £0.60 per kilo	4.40
Materials: paint @ £5 per litre	1.00
Direct labour @ £10 per hour	5.00
Variable overhead @ £3.20/labour hour	1.60
Fixed overhead @ £15 per labour hour	7.50
Total costs	19.90
Standard profit per planter	10.10
Annual sales (number of planters)	10,000
April: projected sales (number of planters)	1,500

Actual sales information for small planters for April:
Actual production and sales of small planters: 1,300
Total revenue from the sale of small planters during April: £42,900
Based on the above standard costing data and information on actual outcomes, what is the sales volume variance for sales of small planters in April?

£2,020 unfavourable

£2,480 unfavourable

£2,620 unfavourable

£3,520 unfavourable

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