Exam 10: Standard Costing and Variance Analysis

Johnson Manufacturing Company's cost accounting department reported the following costs for the period, at an actual production level of 200 units: Standard rates are as follows, for a budgeted production level of 250 units: What is the total flexible budget variance? Is it favorable or unfavorable?

Use the following information to answer Questions below . The following data relates to Koontz Corporation's operations for the month. 1,000 finished units of product were produced and the normal monthly capacity is 2,200 direct labor hours. -What is the materials efficiency variance?

A negative direct labor efficiency variance is considered favorable.

The standard cost of variable overhead is equal to the standard variable overhead application rate multiplied by the standard driver usage at the given level of production.

Which of the following accounts is always part of the closing entry for variances?

Printers Inc. recorded the following information for this past month: What is the flexible budget variance?

In recording the accrual of Wages, if less-skilled workers are employed than were planned for, the entry would most likely include a:

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 price variance.

SureFoot Shoes manufactures running shoes and other athletic apparel. This past month, management recorded the following information: What is the flexible budget variance for this month?

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 labor rate variance?

Assuming that variable overhead is applied to each job as it is completed, when is the variable overhead spending variance recorded?

Paper Packaging Co. buys wood pulp from suppliers, which it then processes into various products. This month, Paper Packaging produced 6,000 batches of paper products. Each batch normally requires 3 lbs. of wood pulp. However, several machine malfunctions caused spoilage of some of the pulp, and the average direct materials usage was actually 3.5 lbs. /batch. The pulp was originally purchased at a special discount price of $0. 20/lb. Paper Products had planned to purchase all direct materials this year at $0.30/lb. What is the journal entry to record the requisition of direct materials into production?

The difference between the Actual cost and the Standard cost for direct labor is called:

What is standard cost accounting?

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 labor 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 labor rate variance.

The Standard Cost Driver usage for variable overhead can be calculated as:

Use the following information to complete Problems below Clayton Company manufactures titanium molds and uses standard costing to account for its production line results. The company's standard costs and quantities are listed below: Actual costs and quantities are listed below: Assume that beginning Work in Process inventory was zero. -What is the reported Cost of Goods Sold?

Which of the following could be a variance that would be highlighted through standard costing?

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 labor efficiency variance.