Exam 11: Standard Costs and Variances

Justin Time Guitars manufactures electric guitars. The following data relate to the standards for direct labor: Justin Time had the following actual results for March: What is the direct labor efficiency variance for March?

Jackson Industries has collected the following data for one of its products: How much is the direct materials quantity variance?

The variable overhead rate variance is also known as which of the following?

Weissfeld Corporation manufactures a single product. The direct materials standard calls for 5 pounds of direct material per unit. The standard for direct material cost per pound is $10. A computer error has wiped out the records for the direct labor standards but the following information is found for the month of October: Required: a. Calculate the number of pounds of direct materials purchased and used during October. b. Calculate the materials quantity variance. c. Calculate the standard direct labor rate per hour. d. Calculate the standard direct labor hours allowed for October's production.

The variable overhead efficiency variance tells management how efficiently manufacturing overhead was used during the period.

A debit balance in the direct materials price variance indicates the standard cost of materials was less than the actual cost of materials.

The Armstrong Corporation developed a flexible budget for its production process. Armstrong budgeted to use 16,000 pounds of direct material with a standard cost of $18 per pound to produce 12,000 units of finished product. Armstrong actually purchased 18,000 pounds and used 17,000 pounds of direct material with a cost of $21 per pound to produce 12,000 units of finished product. Given these results, what is Armstrong's direct material price variance?

It is possible to encounter a situation where the direct labor rate variance is favorable and the direct labor efficiency variance is unfavorable.

Costanza Manufacturing gathered the following information for the year ended December 31: Prepare a standard cost income statement for Costanza for the year ended December 31.

Which term below is best paired with "The difference between the actual overhead cost incurred and the flexible budget amount of overhead cost for actual number of output"?

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 rate variance for March?

The actual cost of direct labor per hour is $16.00 and the standard cost of direct labor per hour is $15.50. The direct labor hours allowed per finished unit is 0.5 hour. During the current period, 5,500 units of finished goods were produced using 3,000 direct labor hours. How much is the direct labor rate variance?

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

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

When auto manufacturer BMW purchased the Rolls-Royce brand name, BMW had to hire and train a new staff of assembly workers. The new workers were paid $25 per hour, worked a total of 7,500 hours, and produced 2,000 cars. BMW budgeted for a standard labor rate of $27 per hour and 1.25 direct labor hours per car. What is the direct labor rate variance for the Rolls-Royce division?

Which variance is directly impacted if the employees who build the product go on strike and temporary workers who are slower and not as skilled are hired?

Which of the following examples would lead directly to a favorable fixed overhead volume variance?

The Davidson Corporation produces clocks. According to company standards, it should take 2 hours of direct labor to produce a clock. Davidson's standard labor cost is $19 per hour. During June, Thomas produced 6,200 stopwatches and used 13,500 hours of direct labor at a total cost of $260,000. What is Thomas' direct labor rate variance for June?

What does the variable overhead efficiency variance tell management?

The following direct materials variance computations are incomplete. Fill in the missing values, and identify the direct materials flexible budget variance as favorable or unfavorable. Direct materials price variance = ($? - $12.50)× 7,000 pounds = $3,500 U Direct materials quantity variance = (? - 6,700 pounds)× $12.50 = ? U Direct materials flexible budget variance = $?