Exam 10: Standard Costing and Variance Analysis

Rogers Inc. recorded the following information for this past year: Assume that the variance is not considered significant. What is Rogers' reported Cost of Goods Sold?

Fabricators Incorporated is a metal-working facility that manufactures steel parts for a variety of products. Due to the highly automated nature of the business, variable overhead is applied on the basis of machine hours. Utilities are incurred at a rate of $0.50 per machine hour, and maintenance costs at a rate of $0.20 per machine hour. Historically, Fabricators has spent 16 hours to manufacture one batch of parts. However, due to recent investments in new machinery, management believes that processing time can be reduced by 75%. What is the standard variable overhead cost per batch?

Outlander Inc. manufactures backpacks and purchases the zippers from outside suppliers. Each backpack requires 3 zippers. An order of 100 zippers normally costs $80. However, Outlander's management is planning to purchase zippers in bulk this year (to take advantage of discounts), and has found a supplier that will furnish 5,000 zippers for $2,000. What is Outlander's standard zipper cost per backpack?

A net unfavorable variance decreases Cost of Goods Sold.

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 spending 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. -What are the entries to record the purchase and requisition of direct materials?

The following information is provided for Taylor Enterprises: What is the direct labor flexible budget variance?

Assume the following information for Wallace Company: What are Wallace's two split cost amounts? (do not round intermediate calculations, round final answer to the nearest cent)

How might hiring a new employee affect the variable overhead efficiency variance?

Reasons for using standard costing include their usefulness in:

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 variable overhead spending variance?

The variable overhead rate variance is calculated as:

When would a firm not simply close all variances to Cost of Goods Sold?

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 labor rate variance?

What manager would be held responsible for a direct materials price variance?

Paper Packaging Co. buys wood pulp from suppliers, which it then processes into various products. This month, Paper Packaging purchased 30,000 lbs. of wood pulp to use in its manufacturing process. The supplier offered a special discount price of $0. 20/lb. Paper Products had planned to purchase all direct materials this year at $0.30/lb. All purchases are made on account. What is the journal entry to record the purchase of direct materials?

What manager would be held responsible for a direct materials efficiency variance?

Assume the following information for Judkins Inc.: What is Judkins' total direct materials flexible budget variance?

How is the split cost for direct labor calculated?

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.