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

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 L 1,750 units \ 0.50 per unit \ 875 M 750 units 1.50 per unit \ 1,125 Yield 2,000units During January, the following actual production information was provided: Material Actual Mix 15,000 units M 10,000 units Yield 18,000 units What is the materials mix variance?

A production __________ would most likely be responsible for an unfavorable variable overhead efficiency variance.

The standard plus the allowable deviation is called the:

Standard costing is used in process industries because it's more difficult to utilize.

Which of the following is the result of actual production being less than expected production?

__________ standards are the standards used for continuous improvement.

Colina Production Company uses a standard costing system. The following information pertains to the current year. Direct labor hours is the driver used to assign overhead costs to products. Actual production 5,500units Actual factory overhead costs (\ 16,500 is fixed) \ 40,125 Actual direct labor costs ( 11,250 hours) \ 131,625 Standard direct labor for 5,500 units: Standard hours allowed 11,000hours Labor rate \ 12.00 The factory overhead rate is based on an activity level of 10,000 direct labor hours. Standard cost data for 5,000 units is as follows: Variable factory overhead \2 2,500 Fixed factory overhead 13,500 Total factory overhead \3 6,000 What is the variable overhead efficiency variance for Colina Production Company?

San Francisco Corporation uses two materials in the production of its product. The materials, X and Y, have the following standards: Material Standard Mix Standard Unit Price Standard Cost X 3,500 units \ 1.00 per unit \ 3,500 Y 1,500 units 3.00 per unit \ 4,500 Yield 4,000 units During April, the following actual production information was provided: Material Actual Mix 30,000 units 20,000 units Yield 36,000 units What is the materials usage variance?

The unit quantity standards can be used to compute the total amount of inputs allowed for the actual output.

Stammer Company uses three materials in the production of their product. The materials, A, B, and C, have the following standards: Material Standard Mix Standard Unit Price Standard Cost A 5,000 units \ 2.00 per unit \ 10,000 B 3,000 units 4.00 per unit \ 12,000 C 2,000 units 3.00 per unit \ 6,000 yield 9,000 units During April, the following actual production information was provided: Material Actual Mix A 40,000 units 20,000 units 10,000 units Yield 60,000 units Required: Calculate the materials usage, mix, and yield variances.

The variable overhead efficiency variance measures the change in variable overhead consumption due to efficient or inefficient use of the activity driver used to assign overhead costs to products.

The total budget variances are categorized into price variances and usage variances.

Price standards are the responsibility of

The direct materials usage variance is the sum of the actual quantities and the standard quantities of units.

Variances indicate

Which is NOT an acceptable method of disposing of variances?

The standard cost sheet includes all of the following EXCEPT

Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July: Standard price per lb. \ 18.00 Actual purchase price per lb. \ 16.50 Quantity purchased 3,100. Quantity used 2,950 Standard quantity allowed for actual output 3,000 Actual output 1,000 units Malkovich Company reports its material price variances at the time of purchase. What is the standard quantity of direct materials per unit for Malkovich Company?

The condition where everything operates perfectly and demands maximum efficiency is called __________ .