Exam 11: Standard Costs and Balanced Scorecard

Clark Company manufactures a product with a standard direct labor cost of two hours at $18.00 per hour. During July, 2,000 units were produced using 4,200 hours at $18.30 per hour. The labor price variance was

It is possible that a company's financial statements may report inventories at

A standard which represents an efficient level of performance that is attainable under expected operating conditions is called a(n)

Use the following information for questions Oxnard Industries produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is .3 pounds and .1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $.10 per pound, and receiving and handling costs are $.07 per pound. The hourly wage rate is $12.00 per hour, but a raise which will average $.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is .2 hours and .1 hours, respectively. -The standard direct labor rate per hour is

The formula for the materials quantity variance is

In using variance reports, management looks for

All Urban Company produces a product requiring 4 pounds of material costing $3.50 per pound. During December, All Urban purchased 4,200 pounds of material for $14,112 and used the material to produce 500 products. What was the materials price variance for December?

Setting standard costs is relatively simple because it is done entirely by accountants.

Standard costs may be incorporated into the accounts in the general ledger.

The use of standard costs in inventory costing is prohibited in financial statements.

A manufacturing company would include setup and downtime in their direct

If the materials price variance is $3,600 F and the materials quantity and labor variances are each $2,700 U, what is the total materials variance?

All of the following are advantages of standard costs except they

Dillon has a standard of 1.5 pounds of materials per unit, at $6 per pound. In producing 2,000 units, Dillon used 3,100 pounds of materials at a total cost of $18,135. Dillon's total variance is

Which of the following statements is false?

If actual direct materials costs are greater than standard direct materials costs, it means that

The difference between a budget and a standard is that

Which of the following statements about overhead variances is false?

The total overhead variance is the difference between the

The overhead volume variance is