Exam 17: Standard Costing and Variance Analysis 1

Figure 17-2 Rax Company has developed the following standards for one of its products: The following activities occurred during the month of October: The company records materials price variances at the time of purchase. -Refer to Figure 17-2. Rax's labour rate variance would be

Figure 17-6 -Refer to Figure 17-6. The fixed overhead volume variance would be

Figure 17-5 Ebola Company has developed the following standards for one of its products: The following activities occurred during the month of October: The company records materials price variances at the time of purchase. -Refer to Figure 17-5. Ebola's labour rate variance would be

Figure 17-6 -Refer to Figure 17-6. The standard rate for total overhead is

If variable overhead is applied based on direct labour hours and there is an unfavourable labour efficiency variance,

Figure 17-6 -Refer to Figure 17-6. The fixed overhead spending variance would be

Figure 17-1 Max Company has developed the following standards for one of its products: Direct materials 15 pounds *£16 per pound Direct labour 4 hours*£24 per hour Variable overhead 4 hours * £14 per hour The following activities occurred during the month of October: Materials purchased 10,000 pounds costing £170,000 Materials used 7,200 pounds Units produced 500 units Direct labour 2,300 hours at £23.60 per hour Actual variable overhead £30,000 The company records materials price variances at the time of purchase. -Refer to Figure 17-1. Max's labour rate variance would be

An unfavourable materials price variance with a favourable materials usage variance would most likely be the result of

The following standard costs were developed for one of Commodore Company's products: The following information is available regarding the company's operations for the period: Budgeted fixed overhead for the period is £280,000, and expected capacity for the period is 28,000 direct labour hours. Required: a. Calculate the standard fixed overhead rate. b. Complete the standard cost card for the product.

Standard cost systems can enhance operational control through the use of

Figure 17-5 Ebola Company has developed the following standards for one of its products: The following activities occurred during the month of October: The company records materials price variances at the time of purchase. -Refer to Figure 17-5. Ebola's variable overhead efficiency variance would be

Figure 17-8 The following information was extracted from the accounting records of Noelle Company: Budgeted fixed overhead for the period is £420,000, and the budgeted fixed overhead rate is based on an expected capacity of 30,000 direct labour hours. The following information is available regarding the company's operations for the period: -The sales price variance is created by a difference between

Labour rate variances can be the result of

Figure 17-7 Orient Company has developed the following standards for one of its products: The following activities occurred during the month of November: The company records materials price variances at the time of purchase. -Refer to Figure 17-7. Orient's variable overhead spending variance would be

Figure 17-1 Max Company has developed the following standards for one of its products: Direct materials 15 pounds *£16 per pound Direct labour 4 hours*£24 per hour Variable overhead 4 hours * £14 per hour The following activities occurred during the month of October: Materials purchased 10,000 pounds costing £170,000 Materials used 7,200 pounds Units produced 500 units Direct labour 2,300 hours at £23.60 per hour Actual variable overhead £30,000 The company records materials price variances at the time of purchase. -Refer to Figure 17-1. Max's labour efficiency variance would be

Figure 17-7 Orient Company has developed the following standards for one of its products: The following activities occurred during the month of November: The company records materials price variances at the time of purchase. -Refer to Figure 17-7. Orient's materials usage variance would be

Figure 17-8 The following information was extracted from the accounting records of Noelle Company: Budgeted fixed overhead for the period is £420,000, and the budgeted fixed overhead rate is based on an expected capacity of 30,000 direct labour hours. The following information is available regarding the company's operations for the period: -Refer to Figure 17-8. Noelle's variable overhead spending variance would be

Figure 17-8 The following information was extracted from the accounting records of Noelle Company: Budgeted fixed overhead for the period is £420,000, and the budgeted fixed overhead rate is based on an expected capacity of 30,000 direct labour hours. The following information is available regarding the company's operations for the period: -Refer to Figure 17-8. Noelle's variable overhead efficiency variance would be

Fixed overhead was budgeted at £500,000 and 25,000 direct labour hours were budgeted. If the fixed overhead volume variance was £12,000 favourable and the fixed overhead spending variance was £16,000 unfavourable, fixed overhead applied must be

Figure 17-1 Max Company has developed the following standards for one of its products: Direct materials 15 pounds *£16 per pound Direct labour 4 hours*£24 per hour Variable overhead 4 hours * £14 per hour The following activities occurred during the month of October: Materials purchased 10,000 pounds costing £170,000 Materials used 7,200 pounds Units produced 500 units Direct labour 2,300 hours at £23.60 per hour Actual variable overhead £30,000 The company records materials price variances at the time of purchase. -Refer to Figure 17-1. Max's materials price variance would be