Wimberley Company Wimberley Company has the following information available for December when 3,500 units were produced (round answers to the nearest dollar). $\begin{array}{ll} \text { Standards: } & 3.5 \text { pounds } \\ \text { Material } & \text { per unit @ } \\ & \$ 4.50 \text { per } \\ & \text { pound } \\ & 5.0 \text { hours } \\ \text { Labor } & \text { per unit @ } \\ & \$ 10.25 \text { per } \\ & \text { hour } \end{array}$ $\begin{array}{ll} \text { Actual: } & \\ \text { Material purchased } & 12,300 \\ & \text { pounds } @ \\ & \$ 4.25 \\ \text { Material used } & 11,750 \\ & \text { pounds } \\ 17,300 \text { direct1abor hours @ } & \end{array}$ $\$ 10.20 \text { per hour }$ Refer to Wimberley Company.What is the labor efficiency variance?

A) $2,050 F B) $2,050 U C) $2,040 U D) $2,040 F A) $2,050 F B) $2,050 U C) $2,040 U D) $2,040 F

Exam 7: Standard Costing and Variance Analysis

Wimberley Company Wimberley Company has the following information available for December when 3,500 units were produced (round answers to the nearest dollar). Standards: 3.5 pounds Material per unit @ \ 4.50 per pound 5.0 hours Labor per unit @ \ 10.25 per hour Actual: Material purchased 12,300 pounds @ \ 4.25 Material used 11,750 pounds 17,300 direct1abor hours @ $\$ 10.20 \text { per hour }$ Refer to Wimberley Company.What is the labor efficiency variance?

(Multiple Choice)

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Question 221

The difference between the standard hours worked for a specific level of production and the actual hours worked is the labor rate variance.

(True/False)

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Question 222

Commodore Company Commodore Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for September when Commodore produced 5,000 units:

Standard:

DLH per unit 3.00

Variable overhead per DLH $1.80

Fixed overhead per DLH $3.25

Budgeted variable overhead $27,250

Budgeted fixed overhead $49,500

Actual:

Direct labor hours 16,000

Variable overhead $31,325

Fixed overhead $49,750

Refer to Commodore Company.Using the three-variance approach,what is the spending variance?

(Multiple Choice)

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Question 223

Berkshire Company The following information is available for Berkshire Company for the current year: Standard: Material X: 3.0 pounds per unit @ $4.20 per pound Material Y: 4.5 pounds per unit @ $3.30 per pound Class S labor: 3 hours per unit @ $10.50 per hour Class US labor: 7 hours per unit @ $8.00 per hour Actual: Material X: 3.6 pounds per unit @ $4.00 per pound (purchased and used) Material Y: 4.4 pounds per unit @ $3.25 per pound (purchased and used) Class S labor: 3.8 hours per unit @ $10.60 per hour Class US labor: 5.7 hours per unit @ $7.80 per hour Berkshire Company produced a total of 45,750 units. Refer to Berkshire Company.Compute the material price,mix,and yield variances (round to the nearest dollar).

(Essay)

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Question 224

The efficiency variance computed on a three-variance approach is

(Multiple Choice)

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Question 225

Ideal standards do not allow for normal operating delays or human limitations.

(True/False)

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Question 226

The difference between the standard hours worked for a specific level of production and the actual hours worked is the labor rate variance.

The efficiency variance computed on a three-variance approach is

Ideal standards do not allow for normal operating delays or human limitations.

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

Standard:
DLH per unit	3.00
Variable overhead per DLH	$1.80
Fixed overhead per DLH	$3.25
Budgeted variable overhead	$27,250
Budgeted fixed overhead	$49,500

Actual:
Direct labor hours	16,000
Variable overhead	$31,325
Fixed overhead	$49,750