Exam 10: Standard Costing and Variance Analysis

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 variable overhead efficiency variance?

Standard costing can be used for both job order and process costing systems.

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 price 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 variable overhead spending 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.

The amount of direct materials purchased is usually equal to the amount of direct materials used in production that period.

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 variable overhead spending variance?

What are some of the sources for setting standard costs?

Use the following information to answer Questions below. Kraig Fencing considers 4,000 direct labor hours or 100 fences to be its normal monthly capacity. Its standard variable overhead rate is $9 per direct labor hour. During the current month, $33,500 of variable overhead costs were incurred in working 3,800 direct labor hours to complete 92 fences. -What is the variable overhead efficiency variance?

Which of the following accurately represents the "split cost" for analyzing the direct materials flexible budget variance?

The following data relates to Pokagon Corporation's operations for the month. Pokagon produced 4,800 units and the normal monthly capacity is 20,000 direct labor hours. Use fork diagrams to calculate the following variances: a. Materials price variance b. Materials efficiency variance c. Labor rate variance d. Labor efficiency variance e. Variable overhead spending variance f. Variable overhead efficiency variance

Use the following information to answer Questions below. Landreth Fencing considers 3,000 direct labor hours or 50 fences to be its normal monthly capacity. Its standard variable overhead rate is $12 per direct labor hour. During the current month, $29,800 of variable overhead costs were incurred in working 2,950 direct labor hours to complete 45 fences. -What is the total variable overhead flexible budget variance?

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. -Assume that variable overhead costs are applied at the end of the period. What is the entry to record the application of variable overhead?

Use the following information to answer Questions below. Landreth Fencing considers 3,000 direct labor hours or 50 fences to be its normal monthly capacity. Its standard variable overhead rate is $12 per direct labor hour. During the current month, $29,800 of variable overhead costs were incurred in working 2,950 direct labor hours to complete 45 fences. -What is the variable overhead efficiency variance?

A direct materials price variance is unfavorable if the price paid per unit is greater than the standard price per unit.

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, the inventory account balance may not actually reflect the true costs incurred to acquire the inventory.

Variable overhead is generally combined with fixed overhead in standard costing.

Why is it not necessary to know the Actual variable overhead application rate in order to determine the variable overhead spending variance?

What is the simplified equation for calculating the direct labor rate variance?