Exam 22: Evaluating Variances From Standard Costs

The following data relate to direct labor costs for the current period:Standard costs36,000 hours at $22.00Actual costs35,000 hours at $23.00What is the direct labor time variance?

Which of the following is not a reason standard costs are separated into two components?

-Calculate the total direct materials cost variance.

Standard costs serve as a device for measuring efficiency.

Use this information to answer the questions that follow. ​ The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: ​​ -The total factory overhead cost variance is

The difference between the standard cost of a product and its actual cost is called a variance.

If a company records inventory purchases at standard cost and also records purchase price variances, prepare the journal entry for a purchase of widgets that were bought at $7.45 per unit and have a standard cost of $7.15. The total amount owed to the vendor for this purchase is $33,525.

Use this information to answer the questions that follow. ​ The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: ​​ -The variable factory overhead controllable variance is

The formula to compute the direct materials price variance is to calculate the difference between

Use this information for Zoyza Company to answer the questions that follow. ​ The following data are given for Zoyza Company: ​ Overhead is applied on standard labor hours. ​​ -The variable factory overhead controllable variance is

A company must choose either a standard system or nonfinancial performance measures to evaluate the performance of a company.

Prepare an income statement for the year ended December 31, through the gross profit for Baxter Company using the following information. Baxter Company sold 8,600 units at $125 per unit. Normal production is 9,000 units. (Do not round fixed overhead rate calculation when determining fixed factory overhead volume variance.)

If the standard to produce a given amount of product is 2,000 units of direct materials at $12 and the actual is 1,600 units at $13, the direct materials quantity variance is $5,200 favorable.

Ideal standards are developed under conditions that assume no idle time, no machine breakdowns, and no materials spoilage.

Japan Company produces lamps that require 2.25 standard hours per unit at an hourly rate of $15.00 per hour. Production of 7,700 units required 19,250 hours at an hourly rate of $14.90 per hour.?What is the direct labor (a) rate variance, (b) time variance, and (c) total cost variance?

The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are as follows:Standard CostsDirect materials (per completed unit)1,040 kilograms at $8.75Actual CostsDirect materials2,000 kilograms at $8.00​The direct materials price variance is

Robin Company purchased on account and used 520 pounds of direct materials to produce a product with a 510-pound standard direct materials requirement. The standard materials price is $2.10 per pound. The actual materials price was $2.00 per pound.​Prepare the journal entries to record (1) the purchase of the materials and (2) the material entering production.

At the end of the fiscal year, variances from standard costs are usually transferred to the

Use this information for Taylor Company to answer the questions that follow. ​ The following data are given for Taylor Company: ​ Overhead is applied based on standard labor hours. ​ -Compute the direct materials price and quantity variances for Taylor Company.

An example of a nonfinancial measure is the number of customer complaints.