Exam 9: Standard Costing and Variances

Oxford Co. has a material standard of 2.1 pounds per unit of output. Each pound has a standard price of $10 per pound. During February, Oxford Co. paid $57,220 for 4,840 pounds, which were used to produce 2,400 units. What is the direct materials quantity variance?

The difference between budgeted volume and practical capacity, multiplied by the fixed overhead rate, is the:

To foster continuous improvement, standards should ________________ over time.

The price variance for direct labor is called the:

Easily attainable standards are the best for motivating individuals to work hard

The difference between the actual labor rate and the standard labor rate, multiplied by the actual labor hours is the:

Viking Corp. uses a standard cost system to account for the costs of its product. (It only has one product.) Material standards are 13 pounds of material at $1.40 per pound and 3 hours of labor at a standard wage rate of $14. During November, Viking Corp. produced and sold 2,300 units. Material purchases totaled 30,100 pounds at a total cost of $42,650. Material usage totaled 29,970 pounds. Payroll totaled $97,780 for 7,140 hours worked. Viking Corp. does not maintain inventories other than direct materials. Prepare journal entries to record the following transactions. a. Direct materials purchase b. Direct materials usage c. Direct labor incurred

Bonnie Company has a direct labor standard of 15 hours per unit of output. Each employee has a standard wage rate of $14 per hour. The standard variable overhead rate is $10 per hour. During March, employees worked 13,100 hours. The direct labor rate variance was $9,170 favorable, the variable overhead rate variance was $13,100 unfavorable, and the direct labor efficiency variance was $15,400 unfavorable. What is the actual variable overhead?

A quantity standard is the amount of input that should go into a single unit of the product or service

A quantity standard is:

Warner Co. has budgeted fixed overhead of $150,000. Practical capacity is 6,000 units, and budgeted production is 5,000 units. During February, 4,800 units were produced and $155,600 was spent on fixed overhead. What is the expected (planned) capacity variance?

The difference between actual volume and budgeted production, multiplied by the fixed overhead rate based on practical capacity, is the:

The fixed overhead volume variance is the difference between:

Warner Co. has budgeted fixed overhead of $150,000. Practical capacity is 6,000 units, and budgeted production is 5,000 units. During February, 4,800 units were produced and $155,600 was spent on fixed overhead. What is the unexpected (unplanned) capacity variance?

Both the master budget and the flexible budget are based on:

The difference between the actual cost driver amount and the standard cost driver amount, multiplied by the standard variable overhead rate is the:

Sage Corp. uses a standard cost system to account for the costs of its one product. Standards are 3 pounds of materials at $14 per pound and 4 hours of labor at a standard wage rate of $12. During July, Sage Corp. produced 3,300 units. Materials purchased and used totaled 10,100 pounds at a total cost of $142,650. Payroll totaled $146,780 for 13,150 hours worked. Calculate the: a. direct labor rate variance. b. direct labor efficiency variance.

In a standard cost system, a favorable variance will appear as:

Oxford Co. has a material standard of 2.1 pounds per unit of output. Each pound has a standard price of $10 per pound. During February, Oxford Co. paid $57,220 for 4,840 pounds, which were used to produce 2,400 units. What is the direct materials price variance?

The formula SR × (SH - AH) is the: