Exam 23: Evaluating Variances From Standard Costs

The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% of normal capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows: ​ -The fixed factory overhead volume variance is

The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% of normal capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows: ​ -The variable factory overhead controllable variance is

Although favorable fixed factory overhead volume variances are usually good news, if inventory levels are too high, additional production could be harmful.

If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual direct materials used are 800 units at $12, the direct materials price variance is $800 favorable.

The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% of normal capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows: ​ -The controllable variance measures

The following data relate to direct labor costs for August: actual costs for 5,500 hours at $24.00 per hour and standard costs for 5,000 hours at $23.70 per hour.​ The direct labor rate variance is

Match each of the following phrases with the term (a-e) it describes. -Theoretical standard

The variance from standard for factory overhead cost resulting from operating at a level above or below 100% of normal capacity is termed volume variance.

Tucker Company produced 8,900 units of product that required 3.25 standard hours per unit. The standard variable overhead cost per unit is $4.00 per hour. The actual variable factory overhead was $111,000.​ Determine the variable factory overhead controllable variance.

The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% of normal capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows: ​ -The unfavorable volume variance may be due to all of the following factors except

Standard and actual costs for direct labor for the manufacture of 1,000 units of product were as follows: Determine the direct labor (a) time variance, (b) rate variance, and (c) total cost variance.

The direct labor time variance is the difference between the

The direct labor time variance measures the efficiency of the direct labor force.

The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% of normal capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows: ​ -Assuming that the standard fixed overhead rate is based on full capacity, the cost of available but unused productive capacity is indicated by the

Titus Company produced 8,900 units of a product that required 3.25 standard hours per unit. The standard fixed overhead cost per unit is $1.20 per hour at 29,000 hours, which is 100% of normal capacity.​ Determine the fixed factory overhead volume variance.

The following data relate to direct labor costs for February: Actual costs 7,700 hours at $14.00 Standard costs 7,000 hours at $16.00 -The direct labor rate variance is

The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours)3 hours per unit at $0.80 per hour Variable overhead 3 hours per unit at $2.00 per hour Actual Costs Total variable cost, $18,000 Total fixed cost, $8,000 -The fixed factory overhead volume variance is

Accounting systems that use standards for product costs are called variable cost systems.

The direct materials quantity variance is the difference between the

Compute the direct labor rate and time variances for Taylor Company.