Cibolo Company Cibolo Company has the following information available for March when 4,200 units were produced (round answers to the nearest dollar). $\begin{array}{ll} \text { Standards: } &4.0 \text { pounds } \\ \text { Material } & \text { per unit @ } \\ & \$ 5.25 \text { per } \\ & \text { pound } \\ & 6.0 \text { hours } \\ \text { Labor } & \text { per unit @ } \\ & \$ 10.00 \text { per } \\ & \text { hour } \end{array}$ $\begin{array}{ll} \text { Actual: } & \\ \text { Material purchased } & 17,500 \\ & \text { pounds } @ \\ & \$ 5.10 \\ \text { Material used } & 16,700 \\ & \text { pounds } \\ 25,500 \text { direct1abor hours @ } & \end{array}$ $\$9.85 \text { per hour }$ Refer to Cibolo Company.What is the labor rate variance?

A) $3,780 F B) $3,780 U C) $3,825 F D) $3,825 U A) $3,780 F B) $3,780 U C) $3,825 F D) $3,825 U

Cibolo Company Cibolo Company has the following information available for March when 4,200 units were produced (round answers to the nearest dollar). $\begin{array}{ll} \text { Standards: } &4.0 \text { pounds } \\ \text { Material } & \text { per unit @ } \\ & \$ 5.25 \text { per } \\ & \text { pound } \\ & 6.0 \text { hours } \\ \text { Labor } & \text { per unit @ } \\ & \$ 10.00 \text { per } \\ & \text { hour } \end{array}$ $\begin{array}{ll} \text { Actual: } & \\ \text { Material purchased } & 17,500 \\ & \text { pounds } @ \\ & \$ 5.10 \\ \text { Material used } & 16,700 \\ & \text { pounds } \\ 25,500 \text { direct1abor hours @ } & \end{array}$ $\$9.85 \text { per hour }$ Refer to Cibolo Company.What is the material quantity variance?

A) $ 510 F B) $ 525 U C) $ 525 F D) $3,675 U A) $ 510 F B) $ 525 U C) $ 525 F D) $3,675 U

Marathon Manufacturing Company uses a standard cost system.Overhead cost information for January is as follows: $\begin{array}{ll} \text { Total actual overheadincurred } & \$ 12,60 \\ \text { Fixed overhead budgeted } & \$ 3,300 \\ \text { Total standard overheadrate per MIH } & \$ 4 \\ \text { Variable overheadrate per MH } & \$3 \\ \text { Standard MHs allowed for actual production } & \$ 3,500 \end{array}$ What is the total overhead variance?

A) $1,200 F B) $1,200 U C) $1,400 F D) $1,400 U A) $1,200 F B) $1,200 U C) $1,400 F D) $1,400 U

Brennan Company The following information is for Brennan Company's September production: $\begin{array}{l} \text { Standards: }\\ \begin{array}{ll} \text { Material } & 4.0 \text { feet per unit@ } \$ 4.20 \text { per foot } \\ \text { Labor } &3.0 \text { hours per unit@ } \$ 7.50 \text { per hour } \end{array} \end{array}$ $\begin{array}{l} \text { Actual: }\\ \begin{array}{ll} \text { Production } & 3,500 \text { units produced during the month } \\ \text { Material } & 14,200 \text { feet used; } 14,700 \text { feet purchased @ } \$ 3.70 \text { per foo } \\ \text { Labor } & 10,400 \text { direct labor hours@ } \$ 8.35 \text { per hour } \end{array} \end{array}$ (Round all answers to the nearest dollar. ) Refer to Brennan Company.What is the material quantity variance?

A) $ 740 F B) $ 750 F C) $ 750 U D) $2,625 U A) $ 740 F B) $ 750 F C) $ 750 U D) $2,625 U

Exam 7: Standard Costing and Variance Analysis

Pittsburg Company uses a standard cost accounting system.The following overhead costs and production data are available for September: Standard fixed OH rate per DLH $\$ 1$ Standard variable $\mathrm{OH}$ rate per $\mathrm{DLH}$ $\$ 4$ Buclgeted monthly $\mathrm{DLH}$ s 40,000 Actual DLHs worked 39,500 Standard DLHs allowed for actual production 39,500 Qveral1 $\mathrm{OH}$ variance-favorable $2,000 The total applied manufacturing overhead for September should be

(Multiple Choice)

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Question 161

Discuss briefly the type of information contained on (a)a bill of materials and (b)an operations flow document.

(Essay)

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Question 162

The difference between actual and budgeted fixed factory overhead is referred to as a fixed overhead spending variance.

(True/False)

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Question 163

A company would most likely have an unfavorable labor rate variance and a favorable labor efficiency variance if

(Multiple Choice)

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Question 164

Buckingham Company Buckingham Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for May when Buckingham produced 4,500 units:

Standard:

DLH per unit 2.50

Variable overhead per DLH $1.75

Fixed overhead per DLH $3.10

Budgeted variable overhead $21,875

Budgeted fixed overhead $38,750

Actual:

Direct labor hours 10,000

Variable overhead $26,250

Fixed overhead $38,000

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

(Multiple Choice)

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Question 165

Which of the following are considered controllable variances? $\text {\underline{ VOH spenching} }$ $\text {\underline{ Total overhead budget} }$ $\text {\underline{ Volume} }$

(Multiple Choice)

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Question 166

The overhead variance calculated as total budgeted overhead at the actual input production level minus total budgeted overhead at the standard hours allowed for actual output is the

(Multiple Choice)

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Question 167

Cibolo Company Cibolo Company has the following information available for March when 4,200 units were produced (round answers to the nearest dollar). Standards: 4.0 pounds Material per unit @ \ 5.25 per pound 6.0 hours Labor per unit @ \ 10.00 per hour Actual: Material purchased 17,500 pounds @ \ 5.10 Material used 16,700 pounds 25,500 direct1abor hours @ $\$9.85 \text { per hour }$ Refer to Cibolo Company.What is the labor rate variance?

(Multiple Choice)

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Question 168

A company using very tight (high)standards in a standard cost system should expect that

(Multiple Choice)

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Question 169

Cibolo Company Cibolo Company has the following information available for March when 4,200 units were produced (round answers to the nearest dollar). Standards: 4.0 pounds Material per unit @ \ 5.25 per pound 6.0 hours Labor per unit @ \ 10.00 per hour Actual: Material purchased 17,500 pounds @ \ 5.10 Material used 16,700 pounds 25,500 direct1abor hours @ $\$9.85 \text { per hour }$ Refer to Cibolo Company.What is the material quantity variance?

(Multiple Choice)

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Question 170

Marathon Manufacturing Company uses a standard cost system.Overhead cost information for January is as follows: Total actual overheadincurred \ 12,60 Fixed overhead budgeted \ 3,300 Total standard overheadrate per MIH \ 4 Variable overheadrate per MH \3 Standard MHs allowed for actual production \ 3,500 What is the total overhead variance?

(Multiple Choice)

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Question 171

The point of purchase model calculates the materials price variance using the quantity of materials purchased.

(True/False)

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Question 172

Lubbock Company has made the following information available for its production facility for the current month.Fixed overhead was estimated at 22,000 machine hours for the production cycle.Actual machine hours for the period were 22,500;4,200 units were produced. Material purchased(107,000 pieces) \ 529,650 Material quantity variance \ 7,000 U Machine hours used ( 22,500 hours) VOH spendingvariance \ 1,00 Actual fixed overhead \ 81,000 Actual labor cost 60,300 Actuallabor hours \ 8,500 Lubbock Company's standard costs are as follows: Direct material 25 pieces@ \5 per piece Direct labor Variable overhead (applied on a machine hour basis) 2.0 hours@ \ 7 per hour Fixed overhead (applied on a machine hour basis) 5.2 hours@ \ 3.00 per hou 5.2 hours@ \ 3.50 per hou Determine the following items: a. material purchase price variance b. standard quantity allowed for material c. total standard cost of material allowed d. actual quantity of material used. e. labor rate variance f. standard hours allowe for labor g. total standard cost of labor allowed h. labor efficiency variance i. actual variable overhead incured j. standard machine hours allowed. k. variable overhead efficiency variance l. budgeted fixed overhead m. applied fixed overhead n. fixed overhead spending variance o. volume variance p. total overhead variance

(Essay)

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Question 173

Which of the following standards can commonly be reached or slightly exceeded by workers in a motivated work environment? $\text {\underline{ Ideal} }$ $\text {\underline{ Practical} }$ $\text {\underline{ Expected annual} }$

(Multiple Choice)

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Question 174

Brennan Company The following information is for Brennan Company's September production: Standards: Material 4.0 feet per unit@ \ 4.20 per foot Labor 3.0 hours per unit@ \ 7.50 per hour Actual: Production 3,500 units produced during the month Material 14,200 feet used; 14,700 feet purchased @ \ 3.70 per foo Labor 10,400 direct labor hours@ \ 8.35 per hour (Round all answers to the nearest dollar. ) Refer to Brennan Company.What is the material quantity variance?

(Multiple Choice)

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Question 175

Pearce Company Pearce Company uses a standard cost system for its production process.Pearce Company applies overhead based on direct labor hours.The following information is available for July:

Standard:

DLH per unit 2.20

Variable overhead per DLH $2.50

Fixed overhead per DLH

Budgeted variable overhead $3.00

(based on 11,990 DLHs)

Actual:
Units produced 4,400

Direct labor hours 8,800

Variable overhead $29,950

Fixed overhead $42,300

Refer to Pearce Company Using the four-variance approach,what is the variable overhead spending variance?

(Multiple Choice)

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Question 176

Jenkins Manufacturing The following information is available for Jenkins Manufacturing Company for the month of June when the company produced 2,100 units: Staudard: Material 2 pounds per unit @$5.80 per pound Labor 3 direct labor hours per unit @ $\$ 10.00$ per hour Actual: Material 4,250 pounds purchased and used@$5.65 per poume Labor $\quad 6,300$ direction hours at $\$ 9.75$ per hour Refer to Jenkins Manufacturing Company.What is the material quantity variance?

(Multiple Choice)

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Question 177

The difference between actual and budgeted fixed factory overhead is referred to as a fixed overhead volume variance.

(True/False)

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Question 178

Which of the following statements regarding standard cost systems is true?

(Multiple Choice)

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Question 179

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 four-variance approach,what is the fixed overhead spending variance?

(Multiple Choice)

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Question 180

Discuss briefly the type of information contained on (a)a bill of materials and (b)an operations flow document.

The difference between actual and budgeted fixed factory overhead is referred to as a fixed overhead spending variance.

A company would most likely have an unfavorable labor rate variance and a favorable labor efficiency variance if

Which of the following are considered controllable variances? $\text {\underline{ VOH spenching} }$ $\text {\underline{ Total overhead budget} }$ $\text {\underline{ Volume} }$

The overhead variance calculated as total budgeted overhead at the actual input production level minus total budgeted overhead at the standard hours allowed for actual output is the

A company using very tight (high)standards in a standard cost system should expect that

The point of purchase model calculates the materials price variance using the quantity of materials purchased.

Which of the following standards can commonly be reached or slightly exceeded by workers in a motivated work environment? $\text {\underline{ Ideal} }$ $\text {\underline{ Practical} }$ $\text {\underline{ Expected annual} }$

The difference between actual and budgeted fixed factory overhead is referred to as a fixed overhead volume variance.

Which of the following statements regarding standard cost systems is true?

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	2.50
Variable overhead per DLH	$1.75
Fixed overhead per DLH	$3.10
Budgeted variable overhead	$21,875
Budgeted fixed overhead	$38,750

Actual:
Direct labor hours	10,000
Variable overhead	$26,250
Fixed overhead	$38,000

Standard:
DLH per unit	2.20
Variable overhead per DLH	$2.50
Fixed overhead per DLH
Budgeted variable overhead	$3.00
(based on 11,990 DLHs)

Actual:
Units produced	4,400
Direct labor hours	8,800
Variable overhead	$29,950
Fixed overhead	$42,300

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

Exam 7: Standard Costing and Variance Analysis

Discuss briefly the type of information contained on (a)a bill of materials and (b)an operations flow document.

The difference between actual and budgeted fixed factory overhead is referred to as a fixed overhead spending variance.

A company would most likely have an unfavorable labor rate variance and a favorable labor efficiency variance if

Which of the following are considered controllable variances? VOH spenching‾ \text {\underline{ VOH spenching} } VOH spenching​ Total overhead budget‾ \text {\underline{ Total overhead budget} } Total overhead budget​ Volume‾ \text {\underline{ Volume} } Volume​

The overhead variance calculated as total budgeted overhead at the actual input production level minus total budgeted overhead at the standard hours allowed for actual output is the

A company using very tight (high)standards in a standard cost system should expect that

The point of purchase model calculates the materials price variance using the quantity of materials purchased.

The difference between actual and budgeted fixed factory overhead is referred to as a fixed overhead volume variance.

Which of the following statements regarding standard cost systems is true?

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

Which of the following are considered controllable variances? $\text {\underline{ VOH spenching} }$ $\text {\underline{ Total overhead budget} }$ $\text {\underline{ Volume} }$