Exam 10: Standard Costs and Performance Reports

Hansen Division operates as a revenue center. Data for this year are as follows: What is the total revenue variance?

Which of the following costs would not be considered an order getting-cost?

By using time and motion studies, it is possible to determine how long it takes to perform an activity. This information is often used to formulate:

Illinois Instruments sells handheld communication devices for $75 during August as a back-to-school special. The normal selling price is $125. The standard variable cost for each device is $95. Sales for August had been budgeted for 400 units nationwide; however, due to the slowdown in the economy, sales were only 300. The sales price variance and sales volume variance are:

Unfavorable materials quantity variances may be partially explained by favorable materials price variances.

For planning and control purposes, fixed overhead is not included in the standard cost per unit because:

Which of the following costs would not be considered an order filling costs?

Al Fabricating Company uses a standard cost system. The following information pertains to 2017: Calculate Al's standard labor rate for 2017.

Cameron Company's budgeted sales were 4,000 units at $30 per unit. During 2017 it had actual sales of 3,800 units at $33 per unit. Budgeted variable costs were $15 per unit. Calculate Cameron's sales volume variance.

Which of the following items must be known to calculate the standard fixed overhead rate per unit?

Structuring performance reports and addressing them to individuals as group members of an organization in a manner that emphasizes factors that can be controlled by them is accomplished by using which of the following?

Firebrick Company's budgeted sales were 10,000 units at $200 per unit. Actual sales were 2,250 units at $210 per unit. Firebrick's sales price variance was:

Identify possible causes for each of the following: a. A favorable materials price variance b. An unfavorable materials price variance c. A favorable materials quantity variance d. An unfavorable materials quantity variance

Liquid Company manufactures a single product that has a standard materials cost of $20 (2 units of raw materials at $10 per unit), standard direct labor cost of $18 (1 hour per unit), and standard variable overhead cost of $8 (based on direct labor-hours). Fixed overhead is budgeted at $34,000 per month. The following data pertain to operations for May of this year: Required: a. Compute the following variances (show calculations): 1. Materials quantity variance 2. Labor rate variance 3. Labor efficiency variance 4. Variable overhead spending variance 5. Variable overhead efficiency variance 6. Fixed overhead budget variance b. Give one possible explanation for each of the six variances computed in requirement (a).

Which of the following descriptions best defines the materials quantity variance?

The manager of an investment center is responsible for all of the following except:

The management of Kaplan Enterprises is analyzing variable overhead variances for the fiscal period just ended. During the period, Kaplan's management used 5,000 hours of direct labor. It had budgeted to use 8,000 hours of direct labor. Hours of direct labor is the single overhead driver of variable overhead. Variable overhead consists of two items. Indirect labor was budgeted as $2.00 per hour of direct labor. Indirect materials was budgeted as $1.00 per hour of direct labor. Actual variable overhead was $30,000. Calculate Kaplan's variable overhead efficiency variance.

The management of Brown & Company is analyzing fixed manufacturing overhead variances for the fiscal period just ended. For the period, Brown & Company had budgeted $800,000 in fixed manufacturing overhead but had actually incurred $580,000. Also, the standard fixed overhead rate was $20 per machine hour and Brown & Company had allowed for 50,000 machine hours. What is Brown & Company's fixed overhead budget variance?

The Beverage Division operates as a revenue center and has the following relevant information for 2017: The actual selling price was $2 less than the budgeted selling price. Required: a. Calculate the budgeted sales price. b. Calculate the actual sales price. c. Calculate actual unit sales. d. Calculate budget unit sales.

Who of the following individuals is most likely responsible for an unfavorable materials price variance?