Exam 23: Evaluating Variances From Standard Costs

​ *Actual hours are equal to standard hours for units produced.​ -If at the end of the fiscal year, the variances from standard are significant, the variances should be transferred to the

Compute the direct materials price and quantity variances for Taylor Company.

The following data are given for Stringer Company: Overhead is applied on standard labor hours. -The direct materials quantity variance is

Match each of the following formulas and phrases with the term (a-e) it describes. -(Actual Quantity - Standard Quantity) × Standard Price

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 variable factory overhead controllable variance is

If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is a _____ variance.

The following data relate to direct materials costs for February: Materials cost per yard: standard, $2.00; actual, $2.10 Yards per unit: standard, 4.5 yards; actual, 4.75 yards Units of production: 9,500 -The total direct materials cost variance is

Standards that represent levels of operation that can be attained with reasonable effort are called _____ standards.

A report that summarizes actual costs, standard costs, and the differences for the units produced is called a

Standard costs are divided into which of the following components?

The direct labor rate variance is the difference between the

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 quantity variance is $1,000 unfavorable.

A favorable cost variance occurs when

Define ideal and normal standards. Which type of standard should be used and why?

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: ​ -Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a _____ variance.

Match each of the following formulas and phrases with the term (a-e) it describes. -(Actual Direct Labor Hours - Standard Direct Labor Hours) × Standard Rate per Hour

The standard price and quantity of direct materials are separated because

​ *Actual hours are equal to standard hours for units produced.​ -At the end of the fiscal year, variances from standard costs are usually transferred to the _____ account.

Standard costs are a useful management tool that can be used solely as a statistical device apart from the ledger or they can be incorporated in the accounts.

The following data relate to direct labor costs for March: Rate: standard, $12.00; actual, $12.25 Hours: standard, 18,500; actual, 17,955 Units of production: 9,450 -The direct labor time variance is