Exam 8: Standard Cost Accounting Materials, Labor, and Factory Overhead

The following information pertains to the Braun Company for March: Using the four-variance method of factory overhead variance analysis, what is the budget variance?

RHO Company began its operations on January 1 and produces a single product that sells for $10.25 per unit. Standard capacity is 80,000 units per year. The 80,000 units were produced and 70,000 units were sold during the year. Manufacturing costs and selling and administrative expenses follow: What is the standard cost of manufacturing a unit of product?

Woodside Company manufactures tables with vinyl tops. The standard material cost for the vinyl used per Style-R table is $7.20 based on 8 square feet of vinyl at a cost of $.90 per square foot. A production run of 1,000 tables in January resulted in usage of 8,300 square feet of vinyl at a cost of $.85 per square foot, a total cost of $7,055. The materials quantity variance resulting from the above production run was:

An unfavorable labor efficiency variance is the:

In the three-variance method of factory overhead analysis, what standard cost variance represents the difference between actual factory overhead incurred and budgeted factory overhead based on actual hours worked?

In a two-variance system for analyzing factory overhead, a favorable volume variance could be caused by:

The data below relate to the month of April for Monroe, Inc., which uses a standard cost system and a two-variance analysis of factory overhead: What was Monroe's controllable variance for April?

When computing variances from standard costs, the difference between actual and standard price multiplied by actual quantity yields:

The following information pertains to Genie Company: What is the entry to record the direct materials cost and variances, assuming that the price variance is recorded when the materials are put into production?

Which of the following is not likely to have caused a materials price variance?

How should an efficiency variance that is material in amount be treated at the end of an accounting period?

Earl Company's direct labor costs for the month of January follow: What was Earl's standard direct labor rate?

If the total materials variance (actual cost of materials used compared with the standard cost of the standard amount of materials required) for a given operation is favorable, why must this variance be further evaluated as to price and usage? A)There is no need to further evaluate the total materials variance if it is favorable. B)Generally accepted accounting principles require that all variances be analyzed in three stages. C)All variances must appear in the annual report to equity owners for proper disclosure. D)It is done so that management can evaluate the efficiency of the purchasing and production functions.

Which of the following is not likely to cause a labor efficiency variance?

Which of the following terms best identifies the function of standard costs where any deviation from standards can be quickly detected and responsibility pinpointed so appropriate action may be taken?

Which of the following correctly demonstrates the comparison of the four-variance method of factory overhead analysis to the two-variance method of factory overhead analysis?

When performing input-output variance analysis in standard costing, "standard hours allowed" is a means of measuring:

Hernandez Corporation uses a standard cost system and has established the following standards for one unit of product: During October, the company purchased 240,000 pounds of material at a total cost of $588,000. The total factory wages for October were $49,400. During October, 21,000 units of product were manufactured using 211,000 pounds of material and 5,200 direct labor hours. Material quantity and price variances are recorded when materials are used. a.Compute the material quantity and labor efficiency variances. b.Compute the material price and labor rate variances.Show whether each of the above variances was either favorable or unfavorable.

Donellan Company has a standard and flexible budgeting system and uses a two-variance analysis of factory overhead. Selected data for the February production activity follows: The controllable variance for February is:

Characteristics of ideal standards include all of the following except: