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

The Jurcevich Corporation manufactures and sells a single product. A standard cost system is used by the company. The standard factory overhead cost for a unit of product is as follows: The overhead cost per unit was calculated for the year based on a 60,000 unit volume as follows: The charges to the manufacturing department for April are given below for the 5,200 units produced: (a) Assuming Jurcevich uses the two-variance method of analyzing factory overhead, calculate the following variances from standard cost: (1) Factory overhead controllable variance (2) Factory overhead volume variance (b) Prepare the journal entry to apply factory overhead to work in process and record the variances.

All of the following are features of a standard cost system except:

The purpose of standard costing is to:

The Johns Company budgeted factory overhead at $125,000 for the period for Department A based on a budgeted volume of 50,000 direct labor hours. At the end of the period, the factory overhead control account for Department A had a balance of $126,000. The actual (and allowed) direct labor hours were 52,000. What was the over- or underapplied factory overhead for the period? A)$6,500 underapplied B)$6,500 overapplied C)$4,000 underapplied D)$4,000 overapplied

The following information is available from the Tomoto Company: Assuming that Tomoto uses a three-variance analysis of overhead variances, what is the budget (spending) variance?

Thomas Company uses a standard cost system and recognizes the materials purchase price variance at the time materials are purchased. Information for raw materials for Product RBI for the month of October follows: What is the entry to record material usage?

Palek Company has adopted the following standards: Palek's January budget was based on normal volume of 40,000 standard labor hours. During January, Palek produced 7,900 units with records indicating the following data: Assuming Palek uses the three-variance method of analyzing factory overhead, compute the following variances for the month of January and indicate whether each is favorable or unfavorable: a.Factory overhead budget variance b.Factory overhead capacity variance c.Factory overhead efficiency variance

In a three-variance method of factory overhead analysis, the variance that indicates that the volume of production was more or less than budgeted is the:

PHI Company began its operations on January 1 and produces a single product that sells for $35.00 per unit. 5,000 units were produced and 4,000 units were sold during the year. Standard costs per unit follow: What is entry to record the finished goods?

Information on Shonda Company's factory overhead costs follows: What is the factory overhead variance?

What type of direct material variances for price and quantity will arise if the actual number of pounds of materials used exceeds standard pounds allowed but actual cost was less than standard cost?

In a four-variance method analyzing factory overhead, the variable factory overhead efficiency variance measures:

A company uses a two-variance analysis for overhead variances, controllable and volume. The volume variance is the difference between the factory overhead applied at standard and:

Under normal circumstances, a purchasing manager who buys poor quality materials because they were cheaper could potentially be responsible for causing all of the following variances except a(n):

VanDerPloeg, Inc. produces farm equipment at several plants. The business is seasonal and cyclical in nature. The accountant for the Denver plant uses flexible budgeting to help the plant management control operations. Data for Denver follows: a.Compute the fixed and variable factory overhead application rates per unit of production. b.Assuming VanDerPloeg uses the two-variance method of analyzing factory overhead, compute the two overhead variances. c.Prepare a flexible budget performance report for January comparing actual and budgeted costs of all cost elements for the actual activity for the month. d.Prove the factory overhead budget variance from the above report.

All of the following are features of a standard cost system except:

Thomas Company uses a standard cost system and recognizes the materials purchase price variance at the time materials are purchased. Information for raw materials for Product RBI for the month of October follows: What is the materials quantity variance?

To effectively use variances to improve operations, management should take the following steps except:

The materials quantity variance, in a standard cost system, is the:

The direct labor costs for Boundary Company follow: What was Boundary's standard direct labor rate?