Exam 23: Evaluating Variances From Standard Costs

​ *Actual hours are equal to standard hours for units produced.​ -Morocco Desk Co. purchases 6,000 feet of lumber at $6 per foot. The standard price for direct materials is $5. The entry to journalize the purchase and unfavorable direct materials price variance is

Lucy Corporation purchased and used 129,000 board feet of lumber in production at a total cost of $1,548,000. Original production had been budgeted for 22,000 units with a standard materials quantity of 5.7 board feet per unit and a standard price of $12 per board foot. Actual production was 23,500 units.​ -The direct materials price variance is

Standard direct materials costs are determined by multiplying the standard price by the standard quantity.

Flapjack Corporation had 8,200 actual direct labor hours at an actual rate of $12.40 per hour. Original production had been budgeted for 1,100 units, but only 1,000 units were actually produced. Labor standards were 7.6 hours per completed unit at a standard rate of $13.00 per hour.​ -The direct labor rate variance is

​ *Actual hours are equal to standard hours for units produced.​ -A company records its inventory purchases at standard cost but also records purchase price variances. The company purchased 5,000 widgets at $8.00 each, and the standard cost for the widgets is $7.60. Which of the following would be included in the journal entry?

If the standard to produce a given amount of product is 500 direct labor hours at $15 and the actual direct labor incurred is 600 hours at $17, the direct labor rate variance is $1,200 favorable.

The variance from standard for factory overhead resulting from incurring a total amount of factory overhead cost that is greater or less than the amount budgeted for the level of operations achieved is termed the variable factory overhead controllable variance.

​ *Actual hours are equal to standard hours for units produced.​ -If the total revenue variance is favorable and the revenue price variance is unfavorable, then the revenue volume variance must

Myers Corporation has the following data related to direct materials costs for November: actual cost for 5,000 pounds of material at $4.50 per pound and standard cost for 4,800 pounds of material at $5.10 per pound.​ The direct materials price variance is

The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are as follows: The direct materials price variance is

​ *Actual hours are equal to standard hours for units produced.​ -Variances from standard costs are included in reports to

The total manufacturing cost variance is