Fleetwood Company Fleetwood Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for May when Fleetwood produced 4,500 units: $\begin{array}{ll}\text { Standard: }\\ \text { DLH per unit } & 2.50 \\ \text { Variable overhead per DLH } & \$ 1.75 \\ \text { Fixed overhead per DLH } & \$ 3.10 \\ \text { Budgeted variable overhead } & \$ 21,875 \\ \text { Budgeted fixed overhead } & \$ 38,750\\\\\text { Actual: }\\ \text {Direct labor hours }&10,000\\ \text { Variable overhead}&\$26,250\\ \text { Fixed overhead}&\$38,000\\ \end{array}$ Refer to Fleetwood Company.Using the four-variance approach,what is the variable overhead efficiency variance?

A) $2,187.50 U B) $9,937.50 F C) $2,187.50 F D) $2,937.50 F A) $2,187.50 U B) $9,937.50 F C) $2,187.50 F D) $2,937.50 F C

Crichton Company The following information is for Crichton Company's July production: $\begin{array}{ll} \textbf { Standard: }\\ \text { Material } & 3.0 \text { feet per unit } @ \$ 4.20 \text { per foot } \\ \text { Labor } & 2.5 \text { hours per unit } @ \$ 7.50 \text { per hour } \end{array}$ $\begin{array}{ll} \textbf { Actual: }\\ \text { Production } & 2,750 \text { units produced during the month } \\ \text { Material } & 8,700 \text { feet used; } 9,000 \text { feet purchased @ } \$ 4.50 \text { per foot } \\ \text { Labor } & 7,000 \text { direct labor hours } \$ 7.90 \text { per hour } \end{array}$ (Round all answers to the nearest dollar.) Refer to Crichton Company.What is the material price variance (calculated at point of purchase)?

A) $2,700 U B) $2,700 F C) $2,610 F D) $2,610 U A) $2,700 U B) $2,700 F C) $2,610 F D) $2,610 U

Strong Manufacturing The following information is available for Strong Manufacturing Company for the month of June when the company produced 2,100 units: $\begin{array}{ll}\text { Standard: }\\ \text { Material } & 2 \text { pounds per urit } @ \$ 5.80 \text { per pound } \\ \text { Labor } & 3 \text { direct labor hours per urit @ } \$ 10.00 \text { per hour }\\\\\text { Actual: }\\ \text { Material } & 4,250 \text { pounds purchased and used @ } \$ 5.65 \text { per pound } \\ \text { Labor } & 6,300 \text { directlabor hours at } \$ 9.75 \text { per hour } \end{array}$ Refer to Strong Manufacturing Company.What is the labor rate variance?

A) $1,575 U B) $1,575 F C) $1,594 U D) $0 A) $1,575 U B) $1,575 F C) $1,594 U D) $0

Exam 7: Standard Costing and Variance Analysis

Wimberly Company Wimberly Company has the following information available for March when 4,200 units were produced (round answers to the nearest dollar). Refer to Wimberly Company.What is the material quantity variance?

Free

(Multiple Choice)

4.8/5

(43)

Question 1

Correct Answer:

Verified

C

Fleetwood Company Fleetwood Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for May when Fleetwood produced 4,500 units: Standard: DLH per unit 2.50 Variable overhead per DLH \ 1.75 Fixed overhead per DLH \ 3.10 Budgeted variable overhead \ 21,875 Budgeted fixed overhead \ 38,750 Actual: Direct labor hours 10,000 Variable overhead \2 6,250 Fixed overhead \3 8,000 Refer to Fleetwood Company.Using the four-variance approach,what is the variable overhead efficiency variance?

Free

(Multiple Choice)

5.0/5

(37)

Question 2

Correct Answer:

Verified

C

Provide the correct term for each of the following definitions:

Free

(Essay)

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(35)

Question 3

Correct Answer:

Verified

When multiple labor categories are used,the financial effect of using a different mix of workers in a production process is referred to as a labor yield variance.

(True/False)

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Question 4

List and discuss briefly the three standards of attainability.

(Essay)

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Question 5

Fixed overhead costs are

(Multiple Choice)

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Question 6

A purpose of standard costing is to

(Multiple Choice)

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Question 7

Total actual overhead minus total budgeted overhead at the actual input production level equals the

(Multiple Choice)

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Question 8

A standard cost card is prepared before developing manufacturing standards for direct materials,direct labor,and factory overhead.

(True/False)

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Question 9

The sum of the material mix and material yield variances equals

(Multiple Choice)

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Question 10

A fixed overhead volume variance is a controllable variance.

(True/False)

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Question 11

Crichton Company The following information is for Crichton Company's July production: Standard: Material 3.0 feet per unit @\ 4.20 per foot Labor 2.5 hours per unit @\ 7.50 per hour Actual: Production 2,750 units produced during the month Material 8,700 feet used; 9,000 feet purchased @ \ 4.50 per foot Labor 7,000 direct labor hours \ 7.90 per hour (Round all answers to the nearest dollar.) Refer to Crichton Company.What is the material price variance (calculated at point of purchase)?

(Multiple Choice)

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Question 12

Favorable variances are represented by credit balances in the overhead account.

(True/False)

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Question 13

A company wishing to isolate variances at the point closest to the point of responsibility will determine its material price variance when

(Multiple Choice)

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Question 14

Discuss why standards may need to be changed after they have been in effect for some period of time.

(Essay)

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Question 15

A favorable fixed overhead spending variance indicates that

(Multiple Choice)

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Question 16

A standard cost system may be used in

(Multiple Choice)

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Question 17

Strong Manufacturing The following information is available for Strong Manufacturing Company for the month of June when the company produced 2,100 units: Standard: Material 2 pounds per urit @\ 5.80 per pound Labor 3 direct labor hours per urit @ \ 10.00 per hour Actual: Material 4,250 pounds purchased and used @ \ 5.65 per pound Labor 6,300 directlabor hours at \ 9.75 per hour Refer to Strong Manufacturing Company.What is the labor rate variance?

(Multiple Choice)

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Question 18

The total labor variance can be subdivided into all of the following except

(Multiple Choice)

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Question 19

The standard cost card contains quantities and costs for

(Multiple Choice)

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Question 20

Wimberly Company Wimberly Company has the following information available for March when 4,200 units were produced (round answers to the nearest dollar). Refer to Wimberly Company.What is the material quantity variance?

Provide the correct term for each of the following definitions:

When multiple labor categories are used,the financial effect of using a different mix of workers in a production process is referred to as a labor yield variance.

List and discuss briefly the three standards of attainability.

Fixed overhead costs are

A purpose of standard costing is to

Total actual overhead minus total budgeted overhead at the actual input production level equals the

A standard cost card is prepared before developing manufacturing standards for direct materials,direct labor,and factory overhead.

The sum of the material mix and material yield variances equals

A fixed overhead volume variance is a controllable variance.

Favorable variances are represented by credit balances in the overhead account.

A company wishing to isolate variances at the point closest to the point of responsibility will determine its material price variance when

Discuss why standards may need to be changed after they have been in effect for some period of time.

A favorable fixed overhead spending variance indicates that

A standard cost system may be used in

The total labor variance can be subdivided into all of the following except

The standard cost card contains quantities and costs for

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

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