Exam 9: Standard Costing: a Functional-Based Control Approach

The formula for the fixed overhead spending variance is:

Croissant Company's standard fixed overhead cost is $6 per direct labor hour based on budgeted fixed costs of $600,000. The standard allows 1 direct labor hour per unit. During the current year, Croissant produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor. What is Croissant's fixed overhead volume variance for the current year?

Harrangue Company's standard variable overhead rate is $6 per direct labor hour, and each unit requires 2 standard direct labor hours. During March, Harry recorded 6,000 actual direct labor hours, $37,000 actual variable overhead costs, and 2,900 units of product manufactured. What is the variable overhead efficiency variance for March for Harrangue?

The costing that establishes price and quantity standards for inputs is called __________ costing.

Which of the following factors would cause an unfavorable material quantity variance?

Formidable Company collected the following information: Standard costs per unit: Variable overhead 4 machine hours @\ 6 per machine hour Fixed overhead 4 machine hours @\ 10 per machine hour Actual output 20,000 units Denominator (normal capacity) output 21,000 units Actual machine hours 79,000 machine hours Actual variable overhead cost \ 540,000 Actual fixed overhead cost \ 800,000 Using the three variance method, what is the budget variance?

The most detailed method to compute overhead variances is the four-variance method.

The following information is provided about three materials utilized in the production of a product: Material Standard Mix Standard Unit Price Standard Cost X 2,500 units \ 3.00 per unit \ 7,500 Y 1,500 units 5.00 per unit \ 7,500 Z 1,000 units 4.00 per unit \ 4,000 Yiel d 4,500 units During May, the following actual production in formati on was provided: Material Actual Mix X 20,000 units Y 10,000 units Z 5,000 units Yield 30,000 units Required: Calculate the materials mix and yield variances.

The factors where actual performance differs from planned are called: __________ .

A yield variance occurs when the actual output is the same as the standard output.

The standard cost sheet shows costs needed to make many units of output.

The variances that focus on the difference between actual quantity and standard quantity are called the __________ variances.

Formidable Company collected the following information: Standard costs per unit: Variable overhead 4 machine hours @\ 6 per machine hour Fixed overhead 4 machine hours @\ 10 per machine hour Actual output 20,000 units Denominator (normal capacity) output 21,000 units Actual machine hours 79,000 machine hours Actual variable overhead cost \ 540,000 Actual fixed overhead cost \ 810,000 Using the three variance method, what is the spending variance?

Artigas Enterprises uses two materials in the production of its product. The materials, L and M, have the following standards: Material Standard Mix Standard Unit Price Standard Cost 1,750 units \ 0.50 per unit \ 875 750 units 1.50 per unit \ 1,125 Yield 2,000 units $\text { During January, the following actual production information was provided: }$ Material Actual Mix L 15,000 units M 10,000 units Yield 18,000 units What is the materials yield variance?

Vin Corporation has the following data related to 100 units of final product: Materials: Standard: 300 pounds at \ 3.00 per pound Actual: 280 pounds at \ 2.75 per pound What is the material usage variance for Vin Corporation?

Somalian Corporation uses a standard costing system. Information for the month of May is as follows: Actual manufacturing overhead costs (\ 26,000 is fixed) \ 80,000 Direct labor: Actual hours worked 12,000 hrs. Standard hours allowed for actual production 10,000 hrs. Average actual labor cost per hour \ 18 The factory overhead rate is based on a normal volume of 12,000 direct labor hours. Standard cost data at 12,000 direct labor hours were as follows: Variable factory overhead \ 48,000 Fixed factory overhead 24,000 Total factory overhead What is the fixed overhead spending variance for Somalian?

All variances accounts are __________ at the end of the operating year.

Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows: Materials: Standard Actual Standard: 210 pounds at \ 3.00 per pound \6 30 Actual: 240 pounds at \ 2.85 per pound \6 84 Direct labor: Standard: 400 hours at \ 15.00 per hour 6,000 Actual: 368 hours at \ 16.50 per hour 6,072 What is the material price variance for Bender Corporation?

During November, 10,000 units were produced. The standard quantity of material allowed per unit was 10 pounds at a standard cost of $3 per pound. If there was an unfavorable usage variance of $18,750 for November, the actual quantity of materials used must be

The following condition which demands maximum efficiency and can be achieved only if everything operates perfectly is called: