Exam 10: Standard Costing and Variance Analysis

The actual cost of variable overhead is equal to the standard cost of variable overhead plus any unfavorable variances and minus any favorable variances.

Use the following information to answer Questions below. The following data relates to Camire Corporation's operations for the month. 3,000 finished units of product were produced and the normal monthly capacity is 4,800 direct labor hours. -What is the variable overhead efficiency variance?

Due to the nature of the procedures involved, service companies do not use standard costing.

How does the skill of workers affect the standard direct materials cost?

Under Standard Costing, and assuming a perpetual inventory system, when are standard costs of inventory transferred to Cost of Goods Sold?

The difference between the split cost and the actual cost for direct materials is called the:

Explain what may have caused an unfavorable flexible budget variance for direct materials, assuming there is no price variance.

Use the following information to answer Questions below. Phillips Fencing considers 6,000 direct labor hours or 200 fences to be its normal monthly capacity. Its standard variable overhead rate is $7 per direct labor hour. During the current month, $44,500 of variable overhead costs were incurred in working 6,200 direct labor hours to complete 215 fences. -What is the total variable overhead flexible budget variance?

Martin Corporation's accountant provided the following information: If there is a $3,750 Favorable variable overhead efficiency variance, what is the variable overhead spending variance?

Which of the following accounts could be affected by the closing entry for a significant variance?

Use the following information to answer Questions below. The following data relates to Camire Corporation's operations for the month. 3,000 finished units of product were produced and the normal monthly capacity is 4,800 direct labor hours. -What is the materials price variance?

The standard direct material cost is equal to:

Use the following information to answer Questions below. The following data relates to Camire Corporation's operations for the month. 3,000 finished units of product were produced and the normal monthly capacity is 4,800 direct labor hours. -What is the materials efficiency variance?

Use the following information to answer Questions below. The following actual and standard cost data for direct material and direct labor relate to the production of 4,000 units of product: -Determine the materials efficiency variance.

Under standard costing, how is reported gross profit calculated in the interim financial statements?

Which of the following could cause a negative variable overhead efficiency variance?

What is a favorable cost variance?

The standard direct labor per-unit cost is equal to:

Recording variances for direct labor requires two separate journal entries: one for the rate variance, and one for the efficiency variance.

How might an unfavorable direct materials flexible budget variance correlate with an unfavorable variable overhead flexible budget variance?