Exam 14: Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Which one of the following, for each direct material used in production, is the difference between the actual units of material used and the total standard units of the direct material that should have been used for the units of the product manufactured during the period, multiplied by the standard unit price of the direct materials?

The amount of operating income in the flexible budget (FB) for September was:

McElroy Company has prepared the following master budget for 2013. Although McElroy has the capacity to manufacture 50,000 units, management expected the likely demand for its product to be 40,000 units in 2013; as such, it prepared the master budget to manufacture and sell 40,000 units. In early January 2014, the company was pleasantly surprised to find out that it manufactured and sold 45,000 units in 2013. Required: Prepare the flexible budget (FB) for the actual operating level achieved in 2013.

The direct materials usage variance for the period is:

The direct labor flexible-budget variance for July was:

What were the total actual direct hours worked?

A favorable cost variance of significant magnitude:

What was Mandy's standard direct labor rate per hour (SP)?

The direct labor flexible-budget variance of the period is:

The direct materials usage (efficiency) variance for June was:

The direct labor rate variance for December is:

What was Mandy's direct labor rate variance for the month?

The direct labor efficiency variance for November is:

Which of the following statements about processing cycle efficiency (PCE) is not true:

Miller has the following information pertaining to its usage of direct labor in a recent period: Required: Given the above, determine the company's: 1. Direct labor efficiency variance for the period. 2. Direct labor rate variance for the period. 3. Summary journal entry to record accrued labor costs and associated standard cost variances for the period.

The actual direct labor rate per hour (AP) is:

Authoritative standards (within the context of a standard cost system) are determined primarily by:

The direct materials usage variance for December is:

The total standard direct labor cost for the units manufactured in February is:

Fill in the unknowns A through S below.