Exam 10: Standard Costs and Variances

Luma Inc. has provided the following data concerning one of the products in its standard cost system. The company has reported the following actual results for the product for September: -The materials price variance for November is:

The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: -What is the variable overhead rate variance for the month?

Pippin Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for June: -The labor rate variance for the month is closest to:

Dirickson Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for July: -The labor efficiency variance for the month is closest to:

Dirickson Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for July: -The labor rate variance for the month is closest to:

Bulluck Corporation makes a product with the following standard costs: The company reported the following results concerning this product in July. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. -The variable overhead rate variance for October is:

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours. The following data pertain to operations for the last month: -The variable overhead rate variance for January is:

Doogan Corporation makes a product with the following standard costs: The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. -The materials quantity variance for January is:

Bumgardner Inc. has provided the following data concerning one of the products in its standard cost system. The company has reported the following actual results for the product for April: -The materials price variance is:

Variable manufacturing overhead is applied to products on the basis of standard direct labor-hours.If the labor efficiency variance is favorable,the variable overhead efficiency variance will be:

Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product: During March, the following activity was recorded by the company: • The company produced 2,400 units during the month. • A total of 19,400 pounds of material were purchased at a cost of $13,580. • There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,620 pounds of material remained in the warehouse. • During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour. • Variable manufacturing overhead costs during March totaled $14,061. The direct materials purchases variance is computed when the materials are purchased. -The labor efficiency variance for March is:

Geschke Corporation, which produces commercial safes, has provided the following data: Supplies cost is an element of variable manufacturing overhead. -The variable overhead rate variance for supplies is closest to:

Pippin Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for June: -The raw materials quantity variance for the month is closest to:

The variable overhead efficiency variance measures the difference between the actual level of activity and the standard activity allowed for the actual output,multiplied by the fixed part of the predetermined overhead rate.

The following data have been provided by Furr Corporation: Indirect labor and power are both elements of variable manufacturing overhead. -The variable overhead rate variance for power is closest to:

Bulluck Corporation makes a product with the following standard costs: The company reported the following results concerning this product in July. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. -The materials price variance for July is:

The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the labor rate variance for the month?

Motts Inc.has a standard cost system in which the standard direct labor for a particular product is 0.50 hours at the standard rate of $21.00 per hour.The company has reported the following actual results for the product for October: Required: a.Compute the labor rate variance for October. b.Compute the labor efficiency variance for October.

The standard quantity or standard hours allowed refers to the amount of the input that should have been used to produce the actual output of the period.

Fluegge Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for December: -The raw materials quantity variance for the month is closest to: