Exam 11: Standard Costs and Variances

The entry to allocate manufacturing overhead costs to production involves which of the following?

Tommy's Toys produces two types of toys: trains and dolls. Tommy's uses stainless steel to manufacture the trains and plastic to manufacture the dolls. Information regarding the usage of steel and plastic for the past year follows: What is the standard direct material price per pound for the plastic in the dolls?

A standard cost income statement shows cost of goods sold at standard and actual cost.

What type of variance results when the actual fixed overhead costs incurred are greater than the budgeted fixed overhead costs?

Litchfield Industries gathered the following information for the month ended June 31: The static budget volume is 5,500 units: Overhead flexible budget: Actual production was 12,000 units. Actual overhead costs were $28,000 for variable costs and $37,000 for fixed costs. Actual machine hours worked were 16,000 hours. What is the fixed overhead volume variance? (Assume the allocation base for fixed overhead costs is machine hours.)

The variable overhead efficiency variance is calculated as Actual Hours × (Actual Rate - Standard Rate).

When a company uses direct materials, the amount of the debit to Work in Process Inventory is based on the standard quantity of the materials that should have been used times the standard price per unit of the materials.

How is the variable overhead rate variance calculated?

Cost of goods sold is shown at which of the following on a standard cost income statement?

Capital Manufacturing designs and manufactures bathtubs for home and commercial applications. Capital recorded the following data for its commercial bathtub production line during the month of March: What is the variable manufacturing overhead efficiency variance for March?

Michael Corporation manufactures railroad cars, which is its only product. The standards for the railroad cars are as follows: During the month of March, the company produced 1,650 cars. Related production data for the month follows: What is the direct materials price variance for the month?

On the line in front of each variance, enter the letters of the items needed to compute that variance. You will enter more than one item on each line. A. Actual price B. Actual quantity C. Standard price D. Standard quantity ______ Direct materials price variance ______ Direct materials quantity variance

The two fixed overhead variances are the

Michael Corporation manufactures railroad cars, which is its only product. The standards for the railroad cars are as follows: During the month of March, the company produced 1,650 cars. Related production data for the month follows: What is the direct materials quantity variance for the month?

How is the variable manufacturing overhead efficiency variance calculated?

Mike's Service Station performs oil changes for cars. Each oil change has a standard time of 0.5 direct labor hours. The standard direct labor hour rate is $15.00 per hour. Data relating to oil changes for the month of September follow: What is the labor rate variance for September?

What standard(s)do(es)direct materials and direct labor have when calculating standard costs?

Farrar Industries reported the following results from its most recent quarter: What is Farrar's direct material quantity variance?

If the standard quantity allowed for direct materials is greater than the actual quantity used, the quantity variance is unfavorable.

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