Exam 9: Standard Costing and Variance Analysis

Viking Corp.uses a standard cost system to account for the costs of its product.(It only has one product. )Materials 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.Materials purchases totaled 30,100 pounds at a total cost of $42,650.Materials 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

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

When the company produces more units than expected,the unexpected capacity variance will be

Madrid Co.has a direct labor standard of 4 hours per unit of output.Each employee has a standard wage rate of $11 per hour.During February,Madrid Co.paid $99,500 to employees for 9,150 hours worked.2,400 units were produced during February.What is the flexible budget amount for direct labor?

The fixed overhead volume variance is the difference between actual production volume and actual sales volume.

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 variable overhead cost be if it used a flexible budget for the period based on actual sales?

A budget that is based on a single estimate of sales volume is called a: