Exam 6: Performance Evaluation: Variance Analysis

R&N Manufacturing produces music boxes.This year's budget was based on the production of 3,000 music boxes using a standard of 3 direct labor hours per music box and $3.10 variable overhead per direct labor hour.R&N incurred 9,500 hours to produce 2,950 music boxes.If actual variable overhead for the year is $32,000, what is R&N's variable overhead spending variance?

Which of the following is not a reason that actual direct labor costs may differ from the flexible budget amounts?

When analyzing direct materials price and quantity variances, the responsibility typically lies with

Johnston Manufacturing Company purchased 14,000 switches to make 6,000 units.The standard allows for 2 switches per unit.The company actually used 14,500 to produce the 6,000 units.Johnston budgeted $0.75 per switch but had to pay $0.80 per switch.What is Johnston's direct materials price variance for the period?

R&N Manufacturing produces music boxes.The fixed overhead rate is $5.10 per direct labor hour, and the company budgeted for 4,600 direct labor hours for the year.During the year, R&N produced 2,500 music boxes using 4,800 direct labor hours.Actual fixed overhead for the year was $23,000.What is the company's fixed overhead spending variance?

When a manager is investigating and understanding the cause of the variable overhead spending variance, he will most likely want to talk to the

Backyard Creations purchased 7,000 feet of copper tubing at a price of $2.70 per foot and used 7,200 feet during the period.The standard price of the copper tubing was $2.50 per foot.What is Backyard Creations' direct materials price variance for the period?

Employee theft of direct materials is likely to result in a(n)

If you know the total dollar amount of direct materials purchased but not the actual unit price, which of the following can you use to calculate the unit price?

Jasmine Manufacturing produces the glass vases used by florists.Each vase requires 15 minutes of direct labor time for which glass blowers are budgeted at $30 per hour.During November, Jasmine produced 10,000 glass vases which required 2,550 hours of direct labor.Jasmine paid wages to the glass blowers of $74,500 during November.What is Jasmine's direct labor rate variance for November?

Morgan's, Inc.has provided you with the following financial information: Required: Prepare a flexible budget.

The sales volume variance reflects

The two components of the direct labor flexible budget variance are the direct labor

The difference between the actual cost of variable overhead items and the amount of variable overhead cost that is expected to be incurred at the actual level of activity base experienced is the

Nantucket, Inc.uses a standard cost system.Workers were paid a total of $48,000 during the month of December.The company's standard wage rate was $10 per hour, and the direct labor rate variance for the month was $1,200 unfavorable. Required: How many hours were worked during December?

Since fixed overhead does not vary with volume within the relevant range, the flexible budget amount will always agree with the

If the actual price of direct materials purchased is $200 per unit while the standard price for direct materials is $180 per unit and the total direct material used is 1,000 units while the standard direct materials allowed for actual production is 1,200 units,

When the production manager is investigating and understanding the cause of the variable overhead spending variance relating to indirect materials, he will most likely want to talk to the

The sales volume variance helps managers understand

Which of the following is a feasible explanation for an unfavorable direct materials quantity variance?