Exam 16: Activity Based Costing

A materials quantity variance is calculated as the difference between the standard direct materials price and the actual direct materials price multiplied by the actual quantity of direct materials used.

The predetermined overhead rate for Zane Company is $5 comprised of a variable overhead rate of $3 and a fixed rate of $2.The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours to arrive at the predetermined overhead rate of $5.Actual overhead for June was $9500 variable and $6050 fixed and standard hours allowed for the product produced in June was 3000 hours.The total overhead variance is

The standard direct materials quantity per unit is

If standard costs are incorporated into the accounting system

Standard costs

The balanced scorecard approach

The predetermined overhead rate for Zane Company is $5 comprised of a variable overhead rate of $3 and a fixed rate of $2.The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours to arrive at the predetermined overhead rate of $5.Actual overhead for June was $8900 variable and $5400 fixed and 1500 units were produced.The direct labor standard is 2 hours per unit produced.The total overhead variance is

Information on Jayhawk's direct labor costs for the month of August is as follows: Actual rate \ 10 Standard hours 11,000 Actual hours 10,000 Direct labor price variance-unfavorable \ 4,000 What was the standard rate for August?

A standard cost is

A company developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound.Last month 1500 pounds of direct materials were purchased for $5700.The direct materials price variance for last month was

If the materials price variance is $3600 F and the materials quantity and labor variances are each $2700 U what is the total materials variance?

In Zero Company's income statement they report actual gross profit of $52500 and the following variances: Materials price \ 420 Materials quantity 600 Labor price 420 Labor quantity 1,000 Overhead 900 Zero would report gross profit at standard of

Denmark Corporation's variance report for the purchasing department reports 1000 units of material A purchased and 2400 units of material B purchased.It also reports standard prices of $2 for Material A and $3 for Material B.Actual prices reported are $2.10 for Material A and $2.80 for Material B.Denmark should report a total price variance of

The cost of freight-in

Dillon has a standard of 1.5 pounds of materials per unit at $6 per pound.In producing 2000 units Dillon used 3100 pounds of materials at a total cost of $18135.Dillon's total variance is

The most rigorous of all standards is the

A company uses 8400 pounds of materials and exceeds the standard by 300 pounds.The quantity variance is $1800 unfavorable.What is the standard price?

The direct materials quantity standard should

There could be instances where the production department is responsible for a direct materials price variance.

The overhead volume variance relates only to fixed overhead costs.