Reference: 11-08 The following materials standards have been established for a particular product: \[\begin{array}{l} \begin{array} { | l | l | l | } \hline \text { Standard quantity per unit of output } & 1.9 & \text { grams } \\ \hline \text { Standard price } & \$ 18.00 & \text { per gram } \\ \hline \end{array}\\ \text { The following data pertain to operations concerning the product for the last month: }\\ \begin{array} { | l | l | l | } \hline \text { Actual materials purchased } & 5,800 & \text { grams } \\ \hline \text { Actual cost of materials purchased } & \$ 108,460 & \\ \hline \text { Actual materials used in production } & 5,200 & \text { grams } \\ \hline \text { Actual output } & 2,700 & \text { units } \\ \hline \end{array} \end{array}\] -Lab Corp. uses a standard cost system. Direct labour information for Product CER for the month of October follows: \[\begin{array} { | l | l | l | } \hline \text { Standard direct labeuf rate } & \$ 6.00 & \text { per hour } \\ \hline \text { Actual direct labour rate paid } & \$ 6.10 & \text { per hour } \\ \hline \text { Standard hours allowed for actual productaon } & 1,500 & \text { hours } \\ \hline \text { Laboua efficiency variance-unfavourable } & 5600 & \\ \hline \end{array}\] What are the actual hours worked?

A) 1,598. B) 1,402. C) 1,600. D) 1,400. A) 1,598. B) 1,402. C) 1,600. D) 1,400.

Reference: 11-02 The Litton Company has established standards as follows: Direct material 3 kg @ $4/kg = $12 per unit Direct labour 2 hrs. @ $8/hr. = $16 per unit Variable manuf. overhead 2 hrs. @ $5/hr. = $10 per unit Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased. \[\begin{array} { | l | l | l | } \hline \text { Units produced } & 600 & \\ \hline \text { Direct material used } & 2,000 & \mathrm {~kg} \\ \hline \text { Direct material purchased } ( 3,000 \mathrm {~kg} ) & \$ 11,400 & \\ \hline \text { Direct labour cost (1,100 hrs.) } & \$ 9,240 & \\ \hline \text { Variable manuf. overhead cost incurred } & \$ 5,720 & \\ \hline \end{array}\] The company applies variable manufacturing overhead to products on the basis of direct labour hours. -Agatha Company produced 4,000 units of Red Apple products.. The direct labour efficiency variance is:

A) $2,400 U. B) $8,100 F. C) $8,000 F. D) $2,000 U. A) $2,400 U. B) $8,100 F. C) $8,000 F. D) $2,000 U.

Reference: 11-01 Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product: \[\begin{array} { | l | l | l | l | } \hline & \text { Standard Quantity } & \text { Standard Price } & \text { Standard Cost } \\ \hline \text { Direct materials } & 6.0 \text { grams } & \$ 3.50 / \text { gram } & \$ 21.00 \\ \hline \text { Direct labour } & 1.3 \text { hours } & \$ 11.00 / \text { hour } & 14.30 \\ \hline & & & \$ 35.30 \\ \hline \end{array}\] During March, Bryan purchased 165,000 grams of direct material at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000 units of product during March using 151,000 grams of direct material and 32,000 direct labour hours. -The direct labour efficiency variance for March is:

A) $5,500 favourable. B) $5,500 unfavourable. C) $5,625 unfavourable. D) $5,625 favourable. A) $5,500 favourable. B) $5,500 unfavourable. C) $5,625 unfavourable. D) $5,625 favourable.

Reference: 11-11 The Clark Company makes a single product and uses standard costing. Variable overhead is assigned to production on the basis of direct labour hours. Some data concerning this product for the month of May follow: \[\begin{array} { | l | l | l | } \hline \text { Labour rate variance: } & \$ 7,000 & \mathrm {~F} \\ \hline \text { Labour efficiency variance: } & \$ 12,000 & \mathrm {~F} \\ \hline \text { Variable overhead efficiency variance: } & \$ 4,000 & \mathrm {~F} \\ \hline \text { Number of units produced: } & 10,000 & \\ \hline \text { Standard labour rate per direct labour hour: } & \$ 12 & \\ \hline \text { Standard variable overhead rate per direct labour hour: } & \$ 4 & \\ \hline \text { Actual labour hours used: } & 14,000 & \\ \hline \text { Actual variable manufacturing overhead costs: } & \$ 58,290 & \\ \hline \end{array}\] -The following standards for variable manufacturing overhead have been established for a company that makes only one product: \[\begin{array}{l} \begin{array} { | l | l | } \hline \text { Standard hours per unit of output } & 5.6 \text { hours } \\ \hline \text { Standard variable overhead rate } & \$ 12.00 \text { per hour } \\ \hline \end{array}\\ \text { The following data pertains to operations for the last month: }\\ \begin{array} { | l | l | } \hline \text { Actual hours } & 2,600 \text { hours } \\ \hline \text { Actual total variable overhead cost } & \$ 31,330 \\ \hline \text { Actual output } & 400 \text { units } \\ \hline \end{array} \end{array}\] What is the variable overhead spending variance for the month?

A) $4,338 U. B) $130 U. C) $112 F. D) $4,450 U. A) $4,338 U. B) $130 U. C) $112 F. D) $4,450 U.

Reference: 11-11 The Clark Company makes a single product and uses standard costing. Variable overhead is assigned to production on the basis of direct labour hours. Some data concerning this product for the month of May follow: \[\begin{array} { | l | l | l | } \hline \text { Labour rate variance: } & \$ 7,000 & \mathrm {~F} \\ \hline \text { Labour efficiency variance: } & \$ 12,000 & \mathrm {~F} \\ \hline \text { Variable overhead efficiency variance: } & \$ 4,000 & \mathrm {~F} \\ \hline \text { Number of units produced: } & 10,000 & \\ \hline \text { Standard labour rate per direct labour hour: } & \$ 12 & \\ \hline \text { Standard variable overhead rate per direct labour hour: } & \$ 4 & \\ \hline \text { Actual labour hours used: } & 14,000 & \\ \hline \text { Actual variable manufacturing overhead costs: } & \$ 58,290 & \\ \hline \end{array}\] -The standard hours allowed to make one unit of finished product are:

A) 1.5. B) 1.0. C) 1.2. D) 2.0. A) 1.5. B) 1.0. C) 1.2. D) 2.0.

Reference: 11-12 The following standards for variable manufacturing overhead have been established for a company that makes only one product: \[\begin{array}{l} \begin{array} { | l | l | l | } \hline \text { Standard hours per unit of output } & 1.6 & \text { hours } \\ \hline \text { Standard variable overhead rate } & \$ 11.55 & \text { per hour } \\ \hline \end{array}\\ \text { The following data pertain to operations for the last month: }\\ \begin{array} { | l | l | l | } \hline \text { Actual hours } & 4,900 & \text { hours } \\ \hline \text { Actual total variable overhead cost } & \$ 58,310 & \\ \hline \text { Actual output } & 3,000 & \text { units } \\ \hline \end{array} \end{array}\] -What is the variable overhead efficiency variance for the month?

A) $1,190 F. B) $1,190 U. C) $1,155 U. D) $1,680 U. A) $1,190 F. B) $1,190 U. C) $1,155 U. D) $1,680 U.

Reference: 11-09 The following materials standards have been established for a particular product: \[\begin{array}{l} \begin{array} { | l | l | l | } \hline \text { Standard quantity per unit of output } & 6.8 & \text { metres } \\ \hline \text { Standard price } & \$ 17.10 & \text { per metre } \\ \hline \end{array}\\ \text { The following data pertain to operations concerning the product for the last month: }\\ \begin{array} { | l | l | l | } \hline \text { Actual materials purchased } & 9,000 & \text { metres } \\ \hline \text { Actual cost of materials purchased } & \$ 156,600 & \\ \hline \text { Actual materials used in production } & 8,500 & \text { metres } \\ \hline \text { Actual output } & 1,200 & \text { units } \\ \hline \end{array} \end{array}\] -The following materials standards have been established for a particular product: \[\begin{array}{l} \begin{array} { | l | l | } \hline \text { Standard quantity per unit of output } & 1.7 \text { metres } \\ \hline \text { Standard price } & \$ 19.80 \text { per metre } \\ \hline \end{array}\\ \text { The following data pertain to operations concerning the product for the last month: }\\ \begin{array} { | l | l | } \hline \text { Actual materials purchased } & 5,800 \text { metres } \\ \hline \text { Actual cost of materials purchased } & \$ 113,680 \\ \hline \text { Actual materials used in production } & 5,100 \text { metres } \\ \hline \text { Actual output } & 3,200 \text { units } \\ \hline \end{array} \end{array}\] What is the materials quantity variance for the month?

A) $6,732 F. B) $13,860 U. C) $6,664 F. D) $13,720U. A) $6,732 F. B) $13,860 U. C) $6,664 F. D) $13,720U.

Reference: 11-02 The Litton Company has established standards as follows: Direct material 3 kg @ $4/kg = $12 per unit Direct labour 2 hrs. @ $8/hr. = $16 per unit Variable manuf. overhead 2 hrs. @ $5/hr. = $10 per unit Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased. \[\begin{array} { | l | l | l | } \hline \text { Units produced } & 600 & \\ \hline \text { Direct material used } & 2,000 & \mathrm {~kg} \\ \hline \text { Direct material purchased } ( 3,000 \mathrm {~kg} ) & \$ 11,400 & \\ \hline \text { Direct labour cost } ( 1,100 \mathrm { hrs } . ) & \$ 9,240 & \\ \hline \text { Variable manuf. overhead cost incurred } & \$ 5,720 & \\ \hline \end{array}\] The company applies variable manufacturing overhead to products on the basis of direct labour hours. -The variable overhead efficiency variance is?

A) $520 U. B) $520 F. C) $500 U. D) $500 F. A) $520 U. B) $520 F. C) $500 U. D) $500 F.

Reference: 11-11 The Clark Company makes a single product and uses standard costing. Variable overhead is assigned to production on the basis of direct labour hours. Some data concerning this product for the month of May follow: \[\begin{array} { | l | l | l | } \hline \text { Labour rate variance: } & \$ 7,000 & \mathrm {~F} \\ \hline \text { Labour efficiency variance: } & \$ 12,000 & \mathrm {~F} \\ \hline \text { Variable overhead efficiency variance: } & \$ 4,000 & \mathrm {~F} \\ \hline \text { Number of units produced: } & 10,000 & \\ \hline \text { Standard labour rate per direct labour hour: } & \$ 12 & \\ \hline \text { Standard variable overhead rate per direct labour hour: } & \$ 4 & \\ \hline \text { Actual labour hours used: } & 14,000 & \\ \hline \text { Actual variable manufacturing overhead costs: } & \$ 58,290 & \\ \hline \end{array}\] -The standards for direct labour for a product are 2.5 hours at $8 per hour. 9,000 units of the product were made and the labour efficiency variance was $8,000 F. The actual number of hours worked during the past period was:

A) 23,500. B) 22,500. C) 20,500. D) 21,500. A) 23,500. B) 22,500. C) 20,500. D) 21,500.

Reference: 11-12 The following standards for variable manufacturing overhead have been established for a company that makes only one product: \[\begin{array}{l} \begin{array} { | l | l | l | } \hline \text { Standard hours per unit of output } & 1.6 & \text { hours } \\ \hline \text { Standard variable overhead rate } & \$ 11.55 & \text { per hour } \\ \hline \end{array}\\ \text { The following data pertain to operations for the last month: }\\ \begin{array} { | l | l | l | } \hline \text { Actual hours } & 4,900 & \text { hours } \\ \hline \text { Actual total variable overhead cost } & \$ 58,310 & \\ \hline \text { Actual output } & 3,000 & \text { units } \\ \hline \end{array} \end{array}\] -The Fletcher Company uses standard costing. The following data are available for October: \[\begin{array} { | l | l | l | } \hline \text { Actual quantity of direct materials used } & 23,500 & \text { grams } \\ \hline \text { Standard price of direct materials } & \$ 2 & \text { per gram } \\ \hline \text { Material quantity variance } & \$ 1,000 & \text { favourable } \\ \hline \end{array}\] The standard quantity of material allowed for October production is:

A) 24,500 lbs. B) 23,000 lbs. C) 25,000 lbs. D) 24,000 lbs. A) 24,500 lbs. B) 23,000 lbs. C) 25,000 lbs. D) 24,000 lbs.

Reference: 11-02 The Litton Company has established standards as follows: Direct material 3 kg @ $4/kg = $12 per unit Direct labour 2 hrs. @ $8/hr. = $16 per unit Variable manuf. overhead 2 hrs. @ $5/hr. = $10 per unit Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased. \[\begin{array} { | l | l | l | } \hline \text { Units produced } & 600 & \\ \hline \text { Direct material used } & 2,000 & \mathrm {~kg} \\ \hline \text { Direct material purchased } ( 3,000 \mathrm {~kg} ) & \$ 11,400 & \\ \hline \text { Direct labour cost (1,100 hrs.) } & \$ 9,240 & \\ \hline \text { Variable manuf. overhead cost incurred } & \$ 5,720 & \\ \hline \end{array}\] The company applies variable manufacturing overhead to products on the basis of direct labour hours. -\[\begin{array} { | l | l | l | } \hline & \text { Food Costs } & \text { Supervisory Salaries } \\ \hline \text { A } & \text { Yes } & \text { Yes } \\ \hline \text { B } & \text { Yes } & \text { No } \\ \hline \text { C } & \text { No } & \text { Yes } \\ \hline \text { D } & \text { No } & \text { No } \\ \hline \end{array}\]

A) Choice A. B) Choice B. C) Choice C. D) Choice D. A) Choice A. B) Choice B. C) Choice C. D) Choice D.

Reference: 11-03 The Albright Company uses standard costing and has established the following standards for its single product: \[\begin{array} { | l | l | } \hline \text { Direct materials } & 2 \text { litres at } \$ 3 \text { per litre } \\ \hline \text { Direct labour } & 0.5 \text { hours at } \$ 8 \text { per hour } \\ \hline \text { Variable manuf. overhead } & 0.5 \text { hours at } \$ 2 \text { per hour } \\ \hline \begin{array} { l } \text { During November, the company made } 4,000 \text { units } \\ \text { and incurred the following costs: } \end{array} & \\ \hline \text { Direct materials purchased } & 8,100 \text { litres at } \$ 3.10 \\ \hline & \text { per litre } \\ \hline \text { Direct materials used } & 7,600 \text { litres } \\ \hline \text { Direct labour used } & 2,200 \text { hours at } \$ 8.25 \text { per hour } \\ \hline \text { Actual variable manuf. overhead } & \$ 4,175 \\ \hline \end{array}\] The company applies variable manufacturing overhead to products on the basis of direct labour hours. -The material price variance for November was?

A) $2,310 F. B) $810 U. C) $2,310 U. D) $810 F. A) $2,310 F. B) $810 U. C) $2,310 U. D) $810 F.

Exam 11: Standard Costs and Variance Analysis

Reference: 11-04 Cole laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows: Standard Quantity Standard Cost per Bag Direct material 20 grams \ 8.00 Direct labour 0.1 hours \ 1.10 Variable manuf. overhead 0.1 hours \ 0.40 The company had no beginning inventories of any kind on Jan. 1. Variable manufacturing overhead is applied to production on the basis of direct labour hours. During January, the following activity was recorded by the company: Production of Fastgro: 4,000 bags Direct materials purchased: 85,000 grams at a cost of $32,300 Direct labour worked: 390 hours at a cost of $4,875 Variable manufacturing overhead incurred: $1,475 Inventory of direct materials on Jan. 31: 3,000 grams -Yola Company manufactures a product with standards for direct labour of 4 direct labour-hours per unit at a cost of $12.00 per direct labour-hour. During June, 1,000 units were produced using 4,100 hours at $12.20 per hour. The direct labour efficiency variance was:

(Multiple Choice)

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Question 41

Reference: 11-06 The Alpha Company produces toys for national distribution. Standards for a particular toy are: Materials: 12 grams per unit at 56 per gram. Labour: 2 hours per unit at $12.75 per hour. During the month of December, the company produced 1,000 units. Information for the month follows: Materials: 14,000 grams were purchased and used at a total cost of $7,140. Labour: 2,500 hours worked at a total cost of $33,000. -Web Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of machine-hours. During February, the company used a denominator activity of 80,000 machine-hours in computing its predetermined fixed overhead rate. However, only 75,000 standard machine-hours were allowed for the month's actual production. If the fixed overhead volume variance for February was $6,400 unfavourable, then the total budgeted fixed overhead cost for the month was:

(Multiple Choice)

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Question 42

Reference: 11-01 Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product: Standard Quantity Standard Price Standard Cost Direct materials 6.0 grams \ 3.50/ gram \ 21.00 Direct labour 1.3 hours \ 11.00/ hour 14.30 \ 35.30 During March, Bryan purchased 165,000 grams of direct material at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000 units of product during March using 151,000 grams of direct material and 32,000 direct labour hours. -Which of the following variances is caused by a difference between the denominator activity in the predetermined overhead rate and the standard hours allowed for the actual production of the period?

(Multiple Choice)

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Question 43

Reference: 11-11 The Clark Company makes a single product and uses standard costing. Variable overhead is assigned to production on the basis of direct labour hours. Some data concerning this product for the month of May follow: Labour rate variance: \ 7,000 Labour efficiency variance: \ 12,000 Variable overhead efficiency variance: \ 4,000 Number of units produced: 10,000 Standard labour rate per direct labour hour: \ 12 Standard variable overhead rate per direct labour hour: \ 4 Actual labour hours used: 14,000 Actual variable manufacturing overhead costs: \ 58,290 -Information on Fleming Company's direct material costs follows: Actual amount of direct materials used 20,000 grams Actual direct material costs \ 40,000 Standard price of direct materials \ 1,90 per gram Direct material quantity variance--favourable \ 5,000 What was the company's direct material price variance?

(Multiple Choice)

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Question 44

Reference: 11-08 The following materials standards have been established for a particular product: Standard quantity per unit of output 1.9 grams Standard price \ 18.00 per gram The following data pertain to operations concerning the product for the last month: Actual materials purchased 5,800 grams Actual cost of materials purchased \ 108,460 Actual materials used in production 5,200 grams Actual output 2,700 units -Lab Corp. uses a standard cost system. Direct labour information for Product CER for the month of October follows: Standard direct labeuf rate \ 6.00 per hour Actual direct labour rate paid \ 6.10 per hour Standard hours allowed for actual productaon 1,500 hours Laboua efficiency variance-unfavourable 5600 What are the actual hours worked?

(Multiple Choice)

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Question 45

Reference: 11-02 The Litton Company has established standards as follows: Direct material 3 kg @ $4/kg = $12 per unit Direct labour 2 hrs. @ $8/hr. = $16 per unit Variable manuf. overhead 2 hrs. @ $5/hr. = $10 per unit Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased. Units produced 600 Direct material used 2,000 Direct material purchased (3,000) \ 11,400 Direct labour cost (1,100 hrs.) \ 9,240 Variable manuf. overhead cost incurred \ 5,720 The company applies variable manufacturing overhead to products on the basis of direct labour hours. -Agatha Company produced 4,000 units of Red Apple products.. The direct labour efficiency variance is:

(Multiple Choice)

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Question 46

Reference: 11-01 Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product: Standard Quantity Standard Price Standard Cost Direct materials 6.0 grams \ 3.50/ gram \ 21.00 Direct labour 1.3 hours \ 11.00/ hour 14.30 \ 35.30 During March, Bryan purchased 165,000 grams of direct material at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000 units of product during March using 151,000 grams of direct material and 32,000 direct labour hours. -The direct labour efficiency variance for March is:

(Multiple Choice)

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Question 47

Reference: 11-11 The Clark Company makes a single product and uses standard costing. Variable overhead is assigned to production on the basis of direct labour hours. Some data concerning this product for the month of May follow: Labour rate variance: \ 7,000 Labour efficiency variance: \ 12,000 Variable overhead efficiency variance: \ 4,000 Number of units produced: 10,000 Standard labour rate per direct labour hour: \ 12 Standard variable overhead rate per direct labour hour: \ 4 Actual labour hours used: 14,000 Actual variable manufacturing overhead costs: \ 58,290 -The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 5.6 hours Standard variable overhead rate \ 12.00 per hour The following data pertains to operations for the last month: Actual hours 2,600 hours Actual total variable overhead cost \ 31,330 Actual output 400 units What is the variable overhead spending variance for the month?

(Multiple Choice)

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Question 48

Reference: 11-11 The Clark Company makes a single product and uses standard costing. Variable overhead is assigned to production on the basis of direct labour hours. Some data concerning this product for the month of May follow: Labour rate variance: \ 7,000 Labour efficiency variance: \ 12,000 Variable overhead efficiency variance: \ 4,000 Number of units produced: 10,000 Standard labour rate per direct labour hour: \ 12 Standard variable overhead rate per direct labour hour: \ 4 Actual labour hours used: 14,000 Actual variable manufacturing overhead costs: \ 58,290 -The standard hours allowed to make one unit of finished product are:

(Multiple Choice)

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Question 49

Reference: 11-11 The Clark Company makes a single product and uses standard costing. Variable overhead is assigned to production on the basis of direct labour hours. Some data concerning this product for the month of May follow: Labour rate variance: \ 7,000 Labour efficiency variance: \ 12,000 Variable overhead efficiency variance: \ 4,000 Number of units produced: 10,000 Standard labour rate per direct labour hour: \ 12 Standard variable overhead rate per direct labour hour: \ 4 Actual labour hours used: 14,000 Actual variable manufacturing overhead costs: \ 58,290 -In a performance report, actual costs should be compared to budgeted costs at the original budgeted activity level.

(True/False)

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Question 50

Reference: 11-12 The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 1.6 hours Standard variable overhead rate \ 11.55 per hour The following data pertain to operations for the last month: Actual hours 4,900 hours Actual total variable overhead cost \ 58,310 Actual output 3,000 units -What is the variable overhead efficiency variance for the month?

(Multiple Choice)

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Question 51

Reference: 11-09 The following materials standards have been established for a particular product: Standard quantity per unit of output 6.8 metres Standard price \ 17.10 per metre The following data pertain to operations concerning the product for the last month: Actual materials purchased 9,000 metres Actual cost of materials purchased \ 156,600 Actual materials used in production 8,500 metres Actual output 1,200 units -The following materials standards have been established for a particular product: Standard quantity per unit of output 1.7 metres Standard price \ 19.80 per metre The following data pertain to operations concerning the product for the last month: Actual materials purchased 5,800 metres Actual cost of materials purchased \ 113,680 Actual materials used in production 5,100 metres Actual output 3,200 units What is the materials quantity variance for the month?

(Multiple Choice)

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Question 52

Reference: 11-02 The Litton Company has established standards as follows: Direct material 3 kg @ $4/kg = $12 per unit Direct labour 2 hrs. @ $8/hr. = $16 per unit Variable manuf. overhead 2 hrs. @ $5/hr. = $10 per unit Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased. Units produced 600 Direct material used 2,000 Direct material purchased (3,000) \ 11,400 Direct labour cost (1,100.) \ 9,240 Variable manuf. overhead cost incurred \ 5,720 The company applies variable manufacturing overhead to products on the basis of direct labour hours. -The variable overhead efficiency variance is?

(Multiple Choice)

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Question 53

Reference: 11-04 Cole laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows: Standard Quantity Standard Cost per Bag Direct material 20 grams \ 8.00 Direct labour 0.1 hours \ 1.10 Variable manuf. overhead 0.1 hours \ 0.40 The company had no beginning inventories of any kind on Jan. 1. Variable manufacturing overhead is applied to production on the basis of direct labour hours. During January, the following activity was recorded by the company: Production of Fastgro: 4,000 bags Direct materials purchased: 85,000 grams at a cost of $32,300 Direct labour worked: 390 hours at a cost of $4,875 Variable manufacturing overhead incurred: $1,475 Inventory of direct materials on Jan. 31: 3,000 grams -The materials price variance for January is?

(Multiple Choice)

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Question 54

Reference: 11-11 The Clark Company makes a single product and uses standard costing. Variable overhead is assigned to production on the basis of direct labour hours. Some data concerning this product for the month of May follow: Labour rate variance: \ 7,000 Labour efficiency variance: \ 12,000 Variable overhead efficiency variance: \ 4,000 Number of units produced: 10,000 Standard labour rate per direct labour hour: \ 12 Standard variable overhead rate per direct labour hour: \ 4 Actual labour hours used: 14,000 Actual variable manufacturing overhead costs: \ 58,290 -The standards for direct labour for a product are 2.5 hours at $8 per hour. 9,000 units of the product were made and the labour efficiency variance was $8,000 F. The actual number of hours worked during the past period was:

(Multiple Choice)

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Question 55

Reference: 11-11 The Clark Company makes a single product and uses standard costing. Variable overhead is assigned to production on the basis of direct labour hours. Some data concerning this product for the month of May follow: Labour rate variance: \ 7,000 Labour efficiency variance: \ 12,000 Variable overhead efficiency variance: \ 4,000 Number of units produced: 10,000 Standard labour rate per direct labour hour: \ 12 Standard variable overhead rate per direct labour hour: \ 4 Actual labour hours used: 14,000 Actual variable manufacturing overhead costs: \ 58,290 -In a standard cost system, the resources applied to production are recorded as additions to work in process inventory using the standard quantities and the standard prices for each actual unit added.

(True/False)

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Question 56

Reference: 11-11 The Clark Company makes a single product and uses standard costing. Variable overhead is assigned to production on the basis of direct labour hours. Some data concerning this product for the month of May follow: Labour rate variance: \ 7,000 Labour efficiency variance: \ 12,000 Variable overhead efficiency variance: \ 4,000 Number of units produced: 10,000 Standard labour rate per direct labour hour: \ 12 Standard variable overhead rate per direct labour hour: \ 4 Actual labour hours used: 14,000 Actual variable manufacturing overhead costs: \ 58,290 -The flexible budget variance is the difference between the actual results and the flexible-budget amount for the actual levels of the revenue and cost drivers.

(True/False)

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Question 57

Reference: 11-12 The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 1.6 hours Standard variable overhead rate \ 11.55 per hour The following data pertain to operations for the last month: Actual hours 4,900 hours Actual total variable overhead cost \ 58,310 Actual output 3,000 units -The Fletcher Company uses standard costing. The following data are available for October: Actual quantity of direct materials used 23,500 grams Standard price of direct materials \ 2 per gram Material quantity variance \ 1,000 favourable The standard quantity of material allowed for October production is:

(Multiple Choice)

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Question 58

Reference: 11-02 The Litton Company has established standards as follows: Direct material 3 kg @ $4/kg = $12 per unit Direct labour 2 hrs. @ $8/hr. = $16 per unit Variable manuf. overhead 2 hrs. @ $5/hr. = $10 per unit Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased. Units produced 600 Direct material used 2,000 Direct material purchased (3,000) \ 11,400 Direct labour cost (1,100 hrs.) \ 9,240 Variable manuf. overhead cost incurred \ 5,720 The company applies variable manufacturing overhead to products on the basis of direct labour hours. - Food Costs Supervisory Salaries A Yes Yes B Yes No C No Yes D No No

(Multiple Choice)

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Question 59

Reference: 11-03 The Albright Company uses standard costing and has established the following standards for its single product: Direct materials 2 litres at \ 3 per litre Direct labour 0.5 hours at \ 8 per hour Variable manuf. overhead 0.5 hours at \ 2 per hour During November, the company made 4,000 units and incurred the following costs: Direct materials purchased 8,100 litres at \ 3.10 per litre Direct materials used 7,600 litres Direct labour used 2,200 hours at \ 8.25 per hour Actual variable manuf. overhead \ 4,175 The company applies variable manufacturing overhead to products on the basis of direct labour hours. -The material price variance for November was?

(Multiple Choice)

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Question 60

An Introduction to Managerial Accounting

Cost Concepts

Systems Design: Job-Order Costing

Process Costing

Activity-Based Costing

Cost Behaviour: Analysis and Use

Budgeting

Cost-Volume-Profit Relationships

Relevant Costs: the Key to Decision Making

Capital Budgeting Decisions

Organizational Structure and Performance Measurement

How Well Am I Doing Financial Statement Analysis Online

How Well Am I Doing Cash Flow Statement Online

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