Exam 17: Standard Costing and Variance Analysis 1

Labour rate variances can be the result of

Figure 17-3 Tuvok Ltd. has developed the following standards for one of its products: Standard cost of materials £0.50 per pound Materials purchased and used 20,000 pounds Total paid to suppliers £11,000 Standard quantity allowed 18,000 pounds -Refer to Figure 17-3. Tuvok's materials usage variance is

A favourable materials price variance may be caused by

If variable overhead is applied based on direct labour hours and there is an unfavourable labour efficiency variance,

Taylor Company's budgeted sales were 10,000 units at £200 per unit. Actual sales were 9,200 units at £210 per unit. Taylor's sales price variance is

Figure 17-8 The following information was extracted from the accounting records of Noelle Company: STANDARD COST CARD PER UNIT Direct materials: 8 pounds \times£1.20 per pound £9.60 Direct labour: 3 hours \times£20 per hour 60.00 Variable overhead: 3 hours \times£6 per hour 18.00 Fixed overhead ? Total standard cost per unit ? Budgeted fixed overhead for the period is £420,000, and the budgeted fixed overhead rate is based on an expected capacity of 30,000 direct labour hours. The following information is available regarding the company's operations for the period: Units produced 10,500 Direct labour 29,000 hours costing £590,000 Overhead incurred: £182,000 Variable £430,000 -Refer to Figure 17-8. Noelle's fixed overhead spending variance would be

A sales volume variance will be favourable when:

Variances indicate

Figure 17-8 The following information was extracted from the accounting records of Noelle Company: STANDARD COST CARD PER UNIT Direct materials: 8 pounds \times£1.20 per pound £9.60 Direct labour: 3 hours \times£20 per hour 60.00 Variable overhead: 3 hours \times£6 per hour 18.00 Fixed overhead ? Total standard cost per unit ? Budgeted fixed overhead for the period is £420,000, and the budgeted fixed overhead rate is based on an expected capacity of 30,000 direct labour hours. The following information is available regarding the company's operations for the period: Units produced 10,500 Direct labour 29,000 hours costing £590,000 Overhead incurred: £182,000 Variable £430,000 -Refer to Figure 17-8. Noelle's standard fixed overhead rate is

Figure 17-5 Ebola Company has developed the following standards for one of its products: Direct materials 20 pounds \times£4 per pound Direct labour 5 hours \times£18 per hour Variable overhead 5 hours \times£4 per hour The following activities occurred during the month of October: Materials purchased 230,000 pounds at £4.20 per pound Materials used 220,000 pounds Units produced 10,000 units Direct labour 51,000 hours at £17.70 per hour Actual variable overhead £240,000 The company records materials price variances at the time of purchase. -Refer to Figure 17-5. Ebola's labour rate variance would be

The two variances for variable overhead are

An unfavourable materials price variance with a favourable materials usage variance would most likely be the result of

Figure 17-7 Orient Company has developed the following standards for one of its products: Direct materials 10 pounds \times£8 per pound Direct labour 6 hours \times£20 per hour Variable overhead 6 hours \times£6 per hour The following activities occurred during the month of November: Materials purchased 8,000 pounds costing £70,000 Materials used 6,500 pounds Units produced 600 units Direct labour 4,200 hours costing £75,600 Actual variable overhead £26,400 The company records materials price variances at the time of purchase. -Refer to Figure 17-7. Orient's labour rate variance would be

Figure 17-2 Rax Company has developed the following standards for one of its products: Direct materials 12 pounds * £14 per pound Direct labour 3 hours * £18 per hour Variable overhead 3 hours * £8 per hour The following activities occurred during the month of October: Materials purchased 10,000 pounds at £13.60 per pound Materials used 9,000 pounds Units produced 800 units Direct labour 2,500 hours at £19.00 per hour Actual variable overhead £22,000 The company records materials price variances at the time of purchase. -Refer to Figure 17-2. Rax's variable standard cost per unit would be

If actual fixed overhead was £120,000 and there was a £2,600 favourable spending variance and a £2,000 unfavourable volume variance, budgeted fixed overhead must have been

Figure 17-4 Shannon Ltd.'s standard cost card contained the following information: Direct labour: 1.25 hours * £8.00 per hour = £10.00 Shannon planned to make 12,000 units. Shannon actually made 10,000 units using 13,000 hours. -Refer to Figure 17-4. Shannon's labour efficiency variance was

Figure 17-8 The following information was extracted from the accounting records of Noelle Company: STANDARD COST CARD PER UNIT Direct materials: 8 pounds \times£1.20 per pound £9.60 Direct labour: 3 hours \times£20 per hour 60.00 Variable overhead: 3 hours \times£6 per hour 18.00 Fixed overhead ? Total standard cost per unit ? Budgeted fixed overhead for the period is £420,000, and the budgeted fixed overhead rate is based on an expected capacity of 30,000 direct labour hours. The following information is available regarding the company's operations for the period: Units produced 10,500 Direct labour 29,000 hours costing £590,000 Overhead incurred: £182,000 Variable £430,000 -Refer to Figure 17-8. Noelle's variable overhead efficiency variance would be

Fixed overhead was budgeted at £500,000 and 25,000 direct labour hours were budgeted. If the fixed overhead volume variance was £12,000 favourable and the fixed overhead spending variance was £16,000 unfavourable, fixed overhead applied must be

An unfavourable materials usage variance may be caused by

Figure 17-5 Ebola Company has developed the following standards for one of its products: Direct materials 20 pounds \times£4 per pound Direct labour 5 hours \times£18 per hour Variable overhead 5 hours \times£4 per hour The following activities occurred during the month of October: Materials purchased 230,000 pounds at £4.20 per pound Materials used 220,000 pounds Units produced 10,000 units Direct labour 51,000 hours at £17.70 per hour Actual variable overhead £240,000 The company records materials price variances at the time of purchase. -Refer to Figure 17-5. Ebola's labour efficiency variance would be