Exam 17: Standard Costing and Variance Analysis 1

Figure 17-3 Tuvok Ltd. has developed the following standards for one of its products: -During October, 14,000 direct labour hours were worked at a standard cost of £40 per hour. If the labour rate variance for October was £70,000 favourable, the actual cost per labour hour must be

Who is responsible for unfavourable labour efficiency variances caused by poor quality materials?

Figure 17-6 -Refer to Figure 17-6. The variable overhead 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 labour efficiency variance would be

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 materials price 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 fixed overhead spending variance would be

Which of the following is information that would be included in the standard cost card (sheet)?

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: -Taylor Company's budgeted sales were 10,000 units at £200 per unit. Actual sales were 9,200 units at £210 per unit. Taylor's sales price variance is

For planning and control purposes, fixed overhead is NOT included in the standard cost per unit because:

The two variances for variable overhead are

The two variances for fixed overhead are

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 efficiency variance would be

Figure 17-4 Shannon Ltd.'s standard cost card contained the following information: Direct labour: 1.25 hours * £8.00 per hour = £10.00 Shannon planned to make 12,000 units. Shannon actually made 10,000 units using 13,000 hours. -Refer to Figure 17-4. Shannon's standard hours allowed for production was

Variances indicate

Figure 17-3 Tuvok Ltd. has developed the following standards for one of its products: -Refer to Figure 17-3. Tuvok's materials usage variance is

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 labour rate variance would be

If actual fixed overhead was £120,000 and there was a £2,600 favourable spending variance and a £2,000 unfavourable volume variance, budgeted fixed overhead must have been

If a company was concerned with controlling expenditures on overhead items, which variance would be useful?

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 materials usage variance would be

Mills Company uses standard costing for direct materials and direct labour. Management would like to use standard costing for variable and fixed overhead. The following monthly cost functions were developed for overhead items: The cost functions are considered reliable within a relevant range of 70,000 to 100,000 direct labour hours. The company expects to operate at 80,000 direct labour hours per month. Information for the month of September is as follows: Required: