Exam 7: Standard Costing and Variance Analysis

Reichs Company The following information is for Reichs Company's September production: (Round all answers to the nearest dollar.) Refer to Reichs Company. What is the material quantity variance?

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: Refer to Fleetwood Company. Using the two-variance approach, what is the controllable variance?

The difference between the standard hours worked for a specific level of production and the actual hours worked is the labor rate variance.

Ritchie Company Ritchie Company uses a standard cost system for its production process. Ritchie Company applies overhead based on direct labor hours. The following information is available for July: Refer to Ritchie Company Using the three-variance approach, what is the efficiency variance?

National Toy Company National Toy Company has developed standard overhead costs based on a capacity of 180,000 machine hours as follows: During November, 85,000 units were scheduled for production, but only 80,000 units were actually produced. The following data relate to November: Actual machine hours used were 165,000. Actual overhead incurred totaled $1,378,000 ($518,000 variable plus $860,000 fixed). All inventories are carried at standard cost. Refer to National Toy Company. The fixed overhead spending variance for November was

Superior Fuel Company uses a standard cost system. Overhead cost information for January is as follows: What is the total overhead variance?

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

Strong Manufacturing The following information is available for Strong Manufacturing Company for the month of June when the company produced 2,100 units: Refer to Strong Manufacturing Company. What is the labor efficiency variance?

Hazelton Company Hazelton Company has the following information available for December when 3,500 units were produced (round answers to the nearest dollar). Refer to Hazleton Company. Assume that the company computes the material price variance on the basis of material issued to production. What is the total material variance?

One unit requires 2 direct labor hours to produce. Standard variable overhead per unit is $1.25 and standard fixed overhead per unit is $1.75. If 330 units were produced this month, what total amount of overhead is applied to the units produced?

A conversion variance combines labor and overhead variances.

Explain the source of variable overhead spending and efficiency variances and how these variances are computed.

Moore Company Moore Company has the following information available for the current year: Refer to Moore Company. Compute the material purchase price and quantity variances.

At the end of a period, a significant material quantity variance should be

Discuss briefly the type of information contained on (a) a bill of materials and (b) an operations flow document.

Standards that provide for no human limitations or operating delays are referred to as ______________________________.

The formula for usage variance is (AQ - SQ) * AP.

A company using very tight (high) standards in a standard cost system should expect that

Genesis Company Genesis Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for September when Genesis produced 5,000 units: Refer to Genesis Company. Using the three-variance approach, what is the volume variance?

Genesis Company Genesis Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for September when Genesis produced 5,000 units: Refer to Genesis Company. Using the four-variance approach, what is the fixed overhead spending variance?