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

Matinna Co.maintains no inventories and has the following data pertaining to one of its direct materials in July: All materials purchased during the month were issued to production.What was the direct materials purchase-price variance for July?

Luanna Inc.manufactures game consoles.Some of the company's data was misplaced.Use the following information to replace the lost data. The amount A is:

A favorable price variance for direct materials indicates that:

Mandy Company has the following direct labor costs last month: What was Mandy's direct labor rate variance?

Pokeman Bunch Inc. ,manufactures PokeMonster figures and has the following data from its operation for the year just completed. The sales-volume variance in terms of operating income is:

Norio Manufacturing uses powdered plastics (PPS)to manufacture a high-pressure board used in digital equipment,Flex 10.Information concerning its operation in June was as follows: The standard cost per pound of PPS is:

Prokp Co.'s records for April disclosed the following data relating to direct labor: Prokp's total standard direct labor cost for the output in April was:

A flexible-budget variance for any fixed cost:

Marv Company's direct labor costs for manufacturing its only product were as follows for October: The direct labor rate variance for October was:

Minmax Co.'s direct labor information for February is as follows: The standard direct labor rate per hour is:

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

A ______________ standard gets progressively tighter over time.

Norio Manufacturing uses powdered plastics (PPS)to manufacture a high-pressure board used in digital equipment,Flex 10.Information concerning its operation in June was as follows: The direct materials purchase-price variance is:

The difference between actual and standard cost caused by the difference between the actual number of resource-units used and the standard number of resource-units that should have been used for the output of the period is called the:

Joe Malay received the following report on the Division's operation for the month of August: Direct labor rate variance = $25,000 unfavorable.Direct labor efficiency variance = $70,000 (?)The standard calls for 3 direct labor hours per unit of output at $28 per labor hour.The standard direct labor hours for the units manufactured is 20 percent more than the total direct labor hours actually worked in August.How many units of the product were produced in August?

Lucky Company's direct labor information for the month of February is as follows: The standard direct labor rate per hour is:

What is a direct labor efficiency variance,and what are some of the likely causes of this variance?

In September,Larson Inc.sold 40,000 units of its only product for $240,000 and incurred a total cost of $225,000,of which $25,000 is fixed costs.The flexible budget for September showed total sales of $300,000.Among variances of the period were: total variable cost flexible-budget variance,$8,000U;total flexible-budget variance,$63,000U;and,sales volume variance,in terms of contribution margin,$27,000U.The total number of budgeted units reflected in the master budget for September was:

Landlubber Company has established a standard direct material cost of 1.5 gallons @ $2 per gallon for one unit of its product.During the past month,actual production of this product was 6,500 units.The direct materials usage (efficiency)variance was $700 (favorable)and the materials price variance (calculated at point of production)was $470 (unfavorable).The entry to charge Work in Process Inventory for the standard material costs during the month and to record the direct material variances in the accounts would include all the following except:

Norio Manufacturing uses powdered plastics (PPS)to manufacture a high-pressure board used in digital equipment,Flex 10.Information concerning its operation in June was as follows: The cost of PPS in the flexible budget for the output of the period is: