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: \[\begin{array} { | l | c | l | c | } \hline & \text { Standard Quantity } & \text { Standard Price } & \text { Standard Cost } \\ \hline \text { Direct materials } & 6.0 \text { grams } & \$ 3.50 / \text { gram } & \$ 21.00 \\ \hline \text { Direct labour } & 1.3 \text { hours } & \$ 11.00 / \text { hour } & 14.30 \\ \hline & & & \$ 35.30 \\ \hline \end{array}\] 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. -In which of the following situations would the use of a standard cost system to control labour costs not necessarily yield useful results?

A) A business is employing responsibility accounting. B) The bookkeeping systems charges materials, labour and overhead costs to work-in process inventory using standard costs. C) In addition to the full monthly standard cost reports the business uses a system where variances are estimated on weekly basis. D) The pace of production is constrained by machine processing speeds. A) A business is employing responsibility accounting. B) The bookkeeping systems charges materials, labour and overhead costs to work-in process inventory using standard costs. C) In addition to the full monthly standard cost reports the business uses a system where variances are estimated on weekly basis. D) The pace of production is constrained by machine processing speeds.

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 quantity variance for November was:

A) $1,200 F. B) $1,200 U. C) $1,500 F. D) $300 U. A) $1,200 F. B) $1,200 U. C) $1,500 F. D) $300 U.

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 total variable overhead variance for November was:

A) $225 F. B) $225 U. C) $400 U. D) $175 U. A) $225 F. B) $225 U. C) $400 U. D) $175 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: \[\begin{array} { | l | c | l | c | } \hline & \text { Standard Quantity } & \text { Standard Price } & \text { Standard Cost } \\ \hline \text { Direct materials } & 6.0 \text { grams } & \$ 3.50 / \text { gram } & \$ 21.00 \\ \hline \text { Direct labour } & 1.3 \text { hours } & \$ 11.00 / \text { hour } & 14.30 \\ \hline & & & \$ 35.30 \\ \hline \end{array}\] 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 price variance for the direct material acquired by the company during March is:

A) $7,550 favourable. B) $8,250 favourable. C) $7,550 unfavourable. D) $8,250 unfavourable. A) $7,550 favourable. B) $8,250 favourable. C) $7,550 unfavourable. D) $8,250 unfavourable.

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 actual direct labour rate for May in dollars per hour was:

A) $11.75. B) $12.00. C) $12.50. D) $11.50. A) $11.75. B) $12.00. C) $12.50. D) $11.50.

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 fixed overhead volume variance is due to:

A) a shift in the amount of hours required to produce the actual output. B) inefficient or efficient use of overhead resources. C) a difference between the denominator activity and the standard hours allowed for the actual output of the period. D) inefficient or efficient use of whatever the denominator activity is. A) a shift in the amount of hours required to produce the actual output. B) inefficient or efficient use of overhead resources. C) a difference between the denominator activity and the standard hours allowed for the actual output of the period. D) inefficient or efficient use of whatever the denominator activity is.

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

A) $5,916 U. B) $8,550 U. C) $8,700 U. D) $5,814 U. A) $5,916 U. B) $8,550 U. C) $8,700 U. D) $5,814 U.

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. -Which of the following variances would be useful in calling attention to possibl? problems in the control of spending on overhead items? \[\begin{array} { | l | l | l | } \hline &\begin{array} {l } \text {vartable }\\\text { overhead}\\ \text {spending }\\ \text {vortance }\\ \end{array}&\begin{array} {l } \text {fixed }\\\text { overhead}\\ \text {spending }\\ \text {vortance }\\ \end{array}\\ \hline \text { A } & \text { No } & \text { No } \\ \hline \text { B } & \text { No } & \text { Yes } \\ \hline \text { C } & \text { Yes } & \text { No } \\ \hline \text { D } & \text { Yes } & \text { Yes } \\ \hline \end{array}\]

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: 11-02 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. \[\begin{array} { | l | l | l | } \hline \text { Units produced } & 600 & \\ \hline \text { Direct material used } & 2,000 & \mathrm {~kg} \\ \hline \text { Direct material purchased (3,000 kg) } & \$ 11,400 & \\ \hline \text { Direct labour cost (1,100 hrs.) } & \$ 9,240 & \\ \hline \text { Variable manuf. overhead cost incurred } & \$ 5,720 & \\ \hline \end{array}\] The company applies variable manufacturing overhead to products on the basis of direct labour hours. -The fixed overhead budget variance is measured by:

A) the difference between actual fixed overhead cost and applied fixed overhead cost. B) the difference between budgeted fixed overhead cost and applied fixed overhead cost. C) the difference between budgeted fixed overhead cost and standard fixed overhead cost. D) the difference between budgeted fixed overhead cost and actual fixed overhead cost. A) the difference between actual fixed overhead cost and applied fixed overhead cost. B) the difference between budgeted fixed overhead cost and applied fixed overhead cost. C) the difference between budgeted fixed overhead cost and standard fixed overhead cost. D) the difference between budgeted fixed overhead cost and actual fixed overhead cost.

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. \[\begin{array} { | l | l | l | } \hline \text { Units produced } & 600 & \\ \hline \text { Direct material used } & 2,000 & \mathrm {~kg} \\ \hline \text { Direct material purchased } ( 3,000 \mathrm {~kg} ) & \$ 11,400 & \\ \hline \text { Direct labour cost } ( 1,100 \text { hrs. } ) & \$ 9,240 & \\ \hline \text { Variable manuf. overhead cost incurred } & \$ 5,720 & \\ \hline \end{array}\] The company applies variable manufacturing overhead to products on the basis of direct labour hours. -Information on Kennedy Company's direct material costs follows: \[\begin{array} { | l | l | l | } \hline \text { Standard price per gram of raw materials } & \$ 3.60 & \\ \hline \text { Actual quantity of raw materials purchased } & 1,600 & \text { grams } \\ \hline \text { Standard quantity allowed for actual production } & 1,450 & \text { grams } \\ \hline \text { Materials purchase price variance-favourable } & \$ 240 & \\ \hline \end{array}\] What was the actual purchase price per unit, rounded to the nearest penny?

A) $3.75. B) $3.06. C) $3.11. D) $3.45. A) $3.75. B) $3.06. C) $3.11. D) $3.45.

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 total standard cost for direct labour for May was:

A) $120,000. B) $180,000. C) $161,000. D) $168,000. A) $120,000. B) $180,000. C) $161,000. D) $168,000.

Reference: 11-10 The following labour standards have been established for a particular product: \[\begin{array}{l} \begin{array} { | l | l | } \hline \text { Standard labour hours per unit of output } & 7.5 \text { hours } \\ \hline \text { Standard labour rate } & \$ 15.25 \text { per hour } \\ \hline \end{array}\\ \text { The following data pertain to operations concerning the product for the last month: }\\ \begin{array} { | l | l | } \hline \text { Actual hours worked } & 9,600 \text { hours } \\ \hline \text { Actual total labour cost } & \$ 144,480 \\ \hline \text { Actual units of output } & 1,200 \\ \hline \end{array} \end{array}\] -The following labour standards have been established for a particular product: \[\begin{array}{l} \begin{array} { | l | l | } \hline \text { Standard labour hours per unit of output } & 1.7 \text { hours } \\ \hline \text { Standard labour rate } & \$ 14.05 \text { per hour } \\ \hline \end{array}\\ \text { The following data pertain to operations concerning the product for the last month: }\\ \begin{array} { | l | l | } \hline \text { Actual hours worked } & 3,700 \text { hours } \\ \hline \text { Actual total labour cost } & \$ 50,690 \\ \hline \text { Actual output } & 2,300 \text { units } \\ \hline \end{array} \end{array}\] What is the labour rate variance for the month?

A) $1,295 F. B) $4,246 F. C) $2,877 F. D) $4,246 U. A) $1,295 F. B) $4,246 F. C) $2,877 F. D) $4,246 U.

Exam 11: Standard Costs and Variance Analysis

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 -Management by exception means that a manager's attention is directed toward those parts of the organization where variances between actual and budget are significant.

(True/False)

4.8/5

(39)

Question 101

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. -In which of the following situations would the use of a standard cost system to control labour costs not necessarily yield useful results?

(Multiple Choice)

4.8/5

(32)

Question 102

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 quantity variance for November was:

(Multiple Choice)

4.8/5

(37)

Question 103

Reference: 11-07 The following materials standards have been established for a particular product: Standard quantity per unit of output: 4.4 grams Standard price: $13.20 per gram The following data pertain to operations concerning the product for the last month: Actual materials purchased: 4,800 grams Actual cost of materials purchased: $62,880 Actual materials used in production: 4,300 grams Actual output: 700 units - vartable overhead spending vortance fixed overhead spending vortance A No No B No Yes C Yes No D Yes Yes

(Multiple Choice)

4.8/5

(35)

Question 104

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 total variable overhead variance for November was:

(Multiple Choice)

4.8/5

(33)

Question 105

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 price variance for the direct material acquired by the company during March is:

(Multiple Choice)

4.8/5

(34)

Question 106

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 actual direct labour rate for May in dollars per hour was:

(Multiple Choice)

4.8/5

(36)

Question 107

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 material quantity variance is computed based on the quantity of all materials purchased during the period.

(True/False)

4.9/5

(43)

Question 108

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 fixed overhead volume variance is due to:

(Multiple Choice)

4.8/5

(24)

Question 109

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 -Dahl Company, a clothing manufacturer, uses a standard costing system. Each unit of a finished product contains 2 metres of cloth. However, there is unavoidable waste of 20%, calculated on input quantities, when the cloth is cut for assembly. The cost of the cloth is $3 per metre. The standard direct material cost for cloth per unit of finished product is:

(Multiple Choice)

4.9/5

(39)

Question 110

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 -A flexible budget is a budget that is developed using budgeted revenue or cost amounts and is not adjusted at the end of the budgeted period.

(True/False)

4.8/5

(40)

Question 111

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 -A limitation of a static budget is that a favourable revenue variance based upon higher than planned activity levels will usually result in unfavourable variable cost variances.

(True/False)

4.7/5

(30)

Question 112

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 -What is the materials quantity variance for the month?

(Multiple Choice)

4.9/5

(33)

Question 113

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. -Which of the following variances would be useful in calling attention to possibl? problems in the control of spending on overhead items? vartable overhead spending vortance fixed overhead spending vortance A No No B No Yes C Yes No D Yes Yes

(Multiple Choice)

4.8/5

(31)

Question 114

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 kg) \ 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. -The fixed overhead budget variance is measured by:

(Multiple Choice)

4.9/5

(39)

Question 115

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. -Information on Kennedy Company's direct material costs follows: Standard price per gram of raw materials \ 3.60 Actual quantity of raw materials purchased 1,600 grams Standard quantity allowed for actual production 1,450 grams Materials purchase price variance-favourable \ 240 What was the actual purchase price per unit, rounded to the nearest penny?

(Multiple Choice)

4.8/5

(41)

Question 116

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 total standard cost for direct labour for May was:

(Multiple Choice)

4.8/5

(35)

Question 117

Reference: 11-13 The Upton Company employs a standard costing system in which variable overhead is assigned to production on the basis of direct labour hours. Data for the month of February include the following: Variable manufacturing overhead cost incurred: $48,700 Total variable overhead variance: $300 F Standard hours allowed for actual production: 7,000 Actual direct labour hours worked: 6,840 -The standard variable overhead rate per direct labour hour is:

(Multiple Choice)

4.9/5

(35)

Question 118

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 -A static budget is geared toward a single level of activity.

(True/False)

4.9/5

(42)

Question 119

Reference: 11-10 The following labour standards have been established for a particular product: Standard labour hours per unit of output 7.5 hours Standard labour rate \ 15.25 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 9,600 hours Actual total labour cost \ 144,480 Actual units of output 1,200 -The following labour standards have been established for a particular product: Standard labour hours per unit of output 1.7 hours Standard labour rate \ 14.05 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 3,700 hours Actual total labour cost \ 50,690 Actual output 2,300 units What is the labour rate variance for the month?

(Multiple Choice)

4.8/5

(36)

Question 120

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

Filters