Exam 11: Standard Costs and Variances

Miller Manufacturing Corporation has the following information regarding direct materials: Actual pounds of direct materials purchased and used 47,000 Standard quantity of direct materials 2.5 pounds per finished good Actual production 20,000 finished goods Direct materials quantity variance $11,500 F Direct materials price variance $ 9,400 U Compute Miller's standard price per pound and actual price per pound of direct materials.

Active Lifestyle Beverages gathered the following information for Job #928: What is the direct materials quantity variance?

Schenley Manufacturing builds playground equipment that it sells to elementary schools and municipalities. Schenley's management has contracted you to perform a variance analysis on the fixed manufacturing overhead for its line of slides. Schenley's cost accounting team informs you that it allocates fixed overhead based on machine hours. This period production was budgeted at 375 slides. Budgeted and actual production data follows: What is the fixed manufacturing overhead volume variance for this period?

A favorable direct labor efficiency variance and an unfavorable direct labor rate variance might indicate which of the following?

Luka Company uses the following overhead standard costs for a single unit of product: 7.5 hours at $13.50 per hour. Actual data for the month showed overhead costs of $132,000 for 1,800 units produced. What is the difference between actual overhead costs and standard overhead costs allocated to products?

A price variance for direct materials measures how well a company keeps unit prices of material within standards.

DOT Safety Systems manufactures motorcycle helmets. What is the standard quantity of material used to manufacture each helmet if the material required is 1.2 pounds, and DOT allows for .25 pounds of waste and .35 pounds of rejected material?

Madden Corporation manufactures t-shirts, which is its only product. The standards for t-shirts are as follows: During the month of January, the company produced 1,250 t-shirts. Related production data for the month follows: What is the direct labor efficiency variance for the month?

Speaker City designs and manufactures high-end home theater speakers. Speaker City uses a standard overhead rate of 3.5 hours per unit at a cost of $9.50 per hour. Data for the month of June shows that Speaker City produced 500 units and recorded actual overhead costs of $19,500. What is the total variable overhead variance for the month of June?

The ________ department would most likely be responsible for a "direct material price variance."

Raw material, ruined through mistakes during production, will result in a materials quantity variance.

Dorsey Corporation Company budgeted 600 pounds of direct materials costing $28.00 per pound to make 7,000 units of product. The company actually used 630 pounds of direct materials costing $30.00 per pound to make the 7,000 units. What is the direct materials quantity variance?

Chemical Supply Incorporated budgeted two and one half hours of direct labor per unit at $11.75 per hour to produce 650 units of product. The 650 units were completed using 1,750 hours of direct labor at $12.50 per hour. What is the direct labor efficiency variance?

Regarding a standard cost income statement, which of the following is true?

Sherwin Chemicals produces commercial strength cleansing supplies. Two of its main products are window cleanser that uses ammonia, and floor cleanser that uses bleach. Information for the most recent period follows: What is the direct materials flexible budget variance for ammonia?