Exam 17: Standard Costing and Variance Analysis 1

During September, 40,000 units of product were produced. The standard quantity of material allowed per unit was four pounds at a standard cost of £6.00 per pound. If there was a favourable materials usage variance of £30,000 for April, the actual quantity of materials used must be

Which of the following is information that would be included in the standard cost card (sheet)?

For better control of direct material prices, when should direct material price variance be recognized?

Using more highly skilled direct labourers might affect which of the following variances?

Franklin Company expected sales were 2,000 units at £100 per unit. During 2011, it had actual sales of 1,800 units at £110 per unit. Budgeted variable costs were £60 per unit. What is Franklin's sales price variance?

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 efficiency variance would be

During October, 16,000 direct labour hours were worked at a standard cost of £6 per hour. If the labour rate variance for October was £4,000 unfavourable, the actual cost per labour hour must be

During December, 6,000 pounds of raw materials were purchased at a cost of £16 per pound. If there was an unfavourable materials price variance of £6,000 for December, the standard cost per pound must be

Figure 17-6 Budgeted fixed overhead for the year £300,000 Budgeted direct labour hours for the year 30,000 Actual fixed overhead for August £24,000 Actual variable overhead for August £10,000 Direct labour hours worked in August 2,600 Standard variable overhead cost per direct labour hour £4 Standard direct labour hours allowed for August production 2,750 -Refer to Figure 17-6. The fixed overhead spending variance would be

Figure 17-1 Max Company has developed the following standards for one of its products: Direct materials 15 pounds \times£16 per pound Direct labour 4 hours \times£24 per hour Variable overhead 4 hours \times£14 per hour The following activities occurred during the month of October: Materials purchased 10,000 pounds costing £170,000 Materials used 7,200 pounds Units produced 500 units Direct labour 2,300 hours at £23.60 per hour Actual variable overhead £30,000 The company records materials price variances at the time of purchase. -Refer to Figure 17-1. Max's labour efficiency variance would be

Figure 17-6 Budgeted fixed overhead for the year £300,000 Budgeted direct labour hours for the year 30,000 Actual fixed overhead for August £24,000 Actual variable overhead for August £10,000 Direct labour hours worked in August 2,600 Standard variable overhead cost per direct labour hour £4 Standard direct labour hours allowed for August production 2,750 -Refer to Figure 17-6. The fixed overhead volume variance would be

Figure 17-1 Max Company has developed the following standards for one of its products: Direct materials 15 pounds \times£16 per pound Direct labour 4 hours \times£24 per hour Variable overhead 4 hours \times£14 per hour The following activities occurred during the month of October: Materials purchased 10,000 pounds costing £170,000 Materials used 7,200 pounds Units produced 500 units Direct labour 2,300 hours at £23.60 per hour Actual variable overhead £30,000 The company records materials price variances at the time of purchase. -Refer to Figure 17-1. Max's variable standard cost per unit would be

Figure 17-1 Max Company has developed the following standards for one of its products: Direct materials 15 pounds \times£16 per pound Direct labour 4 hours \times£24 per hour Variable overhead 4 hours \times£14 per hour The following activities occurred during the month of October: Materials purchased 10,000 pounds costing £170,000 Materials used 7,200 pounds Units produced 500 units Direct labour 2,300 hours at £23.60 per hour Actual variable overhead £30,000 The company records materials price variances at the time of purchase. -Refer to Figure 17-1. Max's materials price variance would be

Standard cost systems can enhance operational control through the use of

Figure 17-6 Budgeted fixed overhead for the year £300,000 Budgeted direct labour hours for the year 30,000 Actual fixed overhead for August £24,000 Actual variable overhead for August £10,000 Direct labour hours worked in August 2,600 Standard variable overhead cost per direct labour hour £4 Standard direct labour hours allowed for August production 2,750 -Refer to Figure 17-6. The standard rate for total overhead is

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 materials usage variance would be

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 standard hours allowed for production was

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 materials price variance would be

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. If Shannon's actual labour cost was £136,500, Shannon's labour rate variance was

During May, 6,000 pounds of raw materials were purchased at a cost of £2.60 per pound. If there was a favourable materials price variance of £900 for December, the standard cost per pound must be