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 labor rate variance?

A flexible budget is an effective tool for budgeting factory overhead.

The formula for price/rate variance is (AP - SP) ´ AQ.

A favorable fixed overhead volume variance occurs if

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

Ideal standards are an effective means of controlling variances and motivating workers.

Which of the following factors should not be considered when deciding whether to investigate a variance?

Expected standards generally yield unfavorable variances.

Hoover Company Hoover Company applies overhead based on direct labor hours and has the following available for the current month: Refer to Hoover Company. Compute all the appropriate variances using the four-variance approach.

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 one-variance approach, what is the total overhead 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 four-variance approach, what is the variable overhead spending 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 variable overhead efficiency variance for November was

The standard predominantly used in Western cultures for motivational purposes is a(n) ____ standard.

Starr Company has made the following information available for its production facility for the current month. Fixed overhead was estimated at 22,000 machine hours for the production cycle. Actual machine hours for the period were 21,700, which generated 4,200 units. Starr Company's standard costs are as follows: Determine the following items:

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 variable overhead spending variance?

A variable overhead spending variance is caused by

Norris Company uses a two-way analysis of overhead variances. Selected data for the March production activity are as follows: Assuming that budgeted fixed overhead costs are equal to actual fixed costs, the controllable variance for March is

The standard cost card contains quantities and costs for

A one-variance approach calculates only a total overhead variance.

A bill of material does not include