Exam 11: Reporting and Analyzing Stockholders Equity

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 materials price per pound is

A credit to a Materials Quantity Variance account indicates that the actual quantity of direct materials used was greater than the standard quantity of direct materials allowed.

Hofburg's standard quantities for 1 unit of product include 2 pounds of materials and 1.5 labor hours.The standard rates are $2 per pound and $7 per hour.The standard overhead rate is $8 per direct labor hour.The total standard cost of Hofburg's product is

A direct labor price standard is frequently called the direct labor efficiency standard.

Ideal standards

The most rigorous of all standards is the

The total materials variance is equal to the

Which is not one of the four most commonly used perspectives on a balanced scorecard?

In concept, standards and budgets are essentially the same.

The formula for the materials quantity variance is

A standard is a unit amount, whereas a budget is a total amount.

Variances from standards are

The standard rate of pay is $20 per direct labor hour.If the actual direct labor payroll was $117,600 for 6,000 direct labor hours worked, the direct labor price (rate) variance is

If actual costs are less than standard costs, the variance is favorable.

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 direct materials quantity standard should

Standards may be useful in setting selling prices for finished goods.

A standard differs from a budget because a standard

Which one of the following statements is true?

The predetermined overhead rate for Zane Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2.The amount of budgeted overhead costs at normal capacity of $150,000 was divided by normal capacity of 30,000 direct labor hours, to arrive at the predetermined overhead rate of $5.Actual overhead for June was $8,900 variable and $5,400 fixed, and 1,500 units were produced.The direct labor standard is 2 hours per unit produced.The total overhead variance is