Exam 24: Standard Costs and Balanced Scorecard

The standard quantity allowed for the units produced was 4,500 pounds, the standard price was $2.50 per pound, and the materials quantity variance was $375 favorable. Each unit uses 1 pound of materials. How many units were actually produced?

The total variance is $35,000. The total materials variance is $14,000. The total labor variance is twice the total overhead variance. What is the total overhead variance?

The total overhead variance is the difference between actual overhead costs and overhead costs applied to work done.

The following direct labor data pertain to the operations of Pearce Corp. for the month of November: Instructions Prepare a matrix and calculate the labor variances.

If the labor quantity variance is unfavorable and the cause is inefficient use of direct labor, the responsibility rests with the

The direct materials quantity standard would not be expressed in

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

More Hits Company manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the following per unit standard costs for 2016 for each baseball bat: In 2016, the company planned to produce 120,000 baseball bats at a level of 60,000 hours of direct labor. Actual results for 2016 are presented below: 1. Direct materials purchases were 246,000 pounds of aluminum which cost $1,020,900. 2. Direct materials used were 220,000 pounds of aluminum. 3. Direct labor costs were $575,260 for 58,700 direct labor hours actually worked. 4. Total manufacturing overhead was $352,000. 5. Actual production was 114,000 baseball bats. Instructions (a) Compute the following variances:

Using standard costs

Seacoast Company provided the following information about its standard costing system for 2016: Instructions Calculate the labor price variance and the labor quantity variance.

The final decision as to what standard costs should be is the responsibility of

Which of the following statements is false?

Edgar, Inc. has a materials price standard of $2.00 per pound. Six thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 6,000 pounds, although the standard quantity allowed for the output was 5,400 pounds. Edgar, Inc.'s materials price variance is

In reporting variances,

Star Industries computes variances as a basis for evaluating the performance of managers responsible for controlling costs. For several months, the labor quantity variance has been unfavorable. Briefly explain what could be causing the unfavorable labor quantity variance and indicate what type of corrective action, if any, might be taken.

The total overhead variance is the difference between the

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

The standard number of hours that should have been worked for the output attained is 10,000 direct labor hours and the actual number of direct labor hours worked was 10,500. If the direct labor price variance was $10,500 unfavorable, and the standard rate of pay was $12 per direct labor hour, what was the actual rate of pay for direct labor?

The following direct labor data pertain to the operations of Murray Industries for the month of November: Standard labor rate $15.00 per hr. Actual hours incurred 9,000 The standard cost card shows that 2.5 hours are required to complete one unit of product. The actual labor rate incurred exceeded the standard rate by 10%. Four thousand units were manufactured in November. Instructions (a) Calculate the price, quantity, and total labor variances. (b) Journalize the entries to record the labor variances.

An unfavorable materials quantity variance would occur if