Exam 11: Standard Costs and Variances

The standard cost of direct labor per hour is $12.50. One and one half standard direct labor hours are allowed per unit of finished goods. During the current period, 560 units were produced using 1,250 direct labor hours. The direct labor rate variance is $1,000 unfavorable. Calculate the actual cost of direct labor per hour.

Which term below is best paired with "a summarized budget that can easily be computed for several volume levels"?

Efficiency variances for direct labor show how changes in the usage of labor affect a company's profits.

The direct labor flexible budget variance can be divided into two variances:

Siberling Tire Corporation manufactures automobile tires. Siberling reported the following budgeted (standard)and actual information for last quarter. What is the direct labor efficiency variance for last quarter?

Cuyahoga Corporation reports the following standards for direct labor for the year: Standard cost per hour $17.75 Standard quantity per finished good 2.0 hours During the year, 35,000 finished goods were produced. The direct labor efficiency variance was $2,650 favorable. The direct labor flexible budget variance was $550 favorable. Calculate the following items regarding direct labor for Cuyahoga Corporation for the year: A. Direct labor rate variance B. Standard hours of direct labor for actual production C. Actual hours of direct labor incurred for actual production

The Laramie Corporation manufactures Product X that consumes a large amount of overhead. For the month of October Laramie produced 15,250 units of Product X and incurred actual overhead costs of $375,000. The standard costs developed for Product X by Laramie follow: What was the total variable overhead variance for Product X in October?

Happy Helpers Maid Service is calculating its standard direct labor rate. The direct labor rate is $12 per hour. Happy Helpers incurs payroll tax expense of 15% of the direct labor rate and incurs costs for sick-days and vacation days of $3 per hour. What is the standard rate per direct labor hour?

Ayers Company reports the following standards for direct materials for the year: Standard cost per pound $4.75 Standard amount per finished good 8.5 pounds During the year, 460,000 finished goods were produced. The direct materials price variance was $14,200 unfavorable. The direct materials flexible budget variance was $980 favorable. Calculate the following items regarding direct materials for Ayers Company for the year: a. Direct materials quantity variance b. Standard quantity of direct materials for actual production c. Actual pounds of direct materials used for actual production

Hushovd Iron Works has collected the following data for its Thunderbolt line of products: What is the direct material price variance?

A direct materials flexible budget variance can be broken down into a price variance and a quantity variance.

A favorable direct materials price variance and an unfavorable direct materials quantity variance might indicate which of the following?

The direct materials price variance is (actual price-standard price)times actual quantity purchased.

Jackson Industries has collected the following data for one of its products: What is the actual cost of the direct materials used per pound?

Akron Clay Company manufactures flowerpots. The following data relate to the standards for direct labor: Akron Clay Company had the following actual results for April: What is the direct labor efficiency variance for April?

Belle Auto Detailing reported the following results for the past week: What is Belle's direct labor rate variance?

Just as in job costing, the manufacturing costs flow through the inventory accounts in the following order: raw materials → work in process → cost of goods sold → finished goods.

Standards should be reviewed and updated at least

A favorable direct materials price variance indicates which of the following?

How is the direct labor rate variance calculated?