Exam 9: Standard Costing and Variance Analysis

Cooper Company has a direct materials standard of 2 gallons of input at a cost of $7.50 per gallon.During July,Cooper Company purchased and used 13,000 gallons,paying $93,200.The direct materials quantity variance was $1,500 unfavorable.How many units were produced?

In a standard cost system,the initial debit to an inventory account is based on:

To foster continuous improvement,standards should ________ over time.

Tulip Inc.uses standard costing,and its manufacturing standards are as follows: 2 pounds of materials at $13 per pound,and 3 hours of labor at $10 per hour.Budgeted production last period was 5,000 units,and actual production was 4,800 units.Last period,Tulip purchased and used 9,800 pounds of materials for $135,000,and used 15,000 labor hours,costing $145,000.What is the journal entry to record the purchase of materials?

The formula SP × (SQ − AQ)is the:

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 total fixed overhead capacity variance?

Exeter has a materials standard of 1 pound per unit of output.Each pound has a standard price of $26 per pound.During July,Exeter paid $66,100 for 2,475 pounds,which it used to produce 2,350 units.What is the direct materials quantity variance?

A spending variance is made up of:

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 budgeted fixed overhead rate based on practical capacity?

Cascade Inc.has provided the following information: Budgeted production = 5,000 units Calculate the: a.direct materials price variance. b.direct materials quantity variance. c.direct labor rate variance. d.direct labor efficiency variance. e.variable overhead rate variance. f.variable overhead efficiency variance. g.fixed overhead spending variance.

Comparing the master budget with the flexible budget creates a:

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

Who would typically be responsible for the direct materials quantity variance?

The difference between the actual quantity and the standard quantity,multiplied by the standard price,is the:

The standard labor rate is:

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

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

Jupiter Co.applies overhead based on direct labor hours.The variable overhead standard is 4 hours at $12 per hour.During February,Jupiter Co.spent $113,400 for variable overhead.9,150 labor hours were used to produce 2,400 units.What is the variable overhead efficiency variance?

Basil Tooling uses a standard cost system to account for the costs of its one product.Standards are 4 sheets of ½-inch steel at $110 per sheet and 14 hours of labor at a standard wage rate of $13.During July,Basil Tooling produced 600 units.Materials purchased and used totaled 2,540 sheets at a total cost of $268,850.Payroll totaled $112,930 for 8,770 hours worked.Calculate the: a.direct materials price variance. b.direct materials quantity variance. c.direct labor rate variance. d.direct labor efficiency variance.

Delaware Corp.prepared a master budget that included $21,360 for direct materials,$33,600 for direct labor,$18,000 for variable overhead,and $46,440 for fixed overhead.Delaware Corp.planned to sell 4,000 units during the period,but actually sold 4,300 units.What would Delaware's total costs be if it used a flexible budget for the period based on actual sales?