Exam 10: Standard Costs and Variances

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: -What is the variable overhead rate variance for the month?

Camps Inc.has a standard cost system.The standards for direct materials for one of its products specify 4.4 ounces of a particular input per unit of output at a standard cost of $6.40 per ounce.The company has reported the following actual results for the product for May: Required: a.Compute the materials price variance for this input for May. b.Compute the materials quantity variance for this input for May.

The materials quantity variance for January is:

Polaco Corporation makes a product that has the following direct labor standards: In May the company produced 8,500 units using 3,220 direct labor-hours. The actual direct labor rate was $22.10 per hour. -The labor rate variance for May is:

The standards for product V28 call for 7.5 pounds of a raw material that costs $18.10 per pound.Last month,1,400 pounds of the raw material were purchased for $24,990.The actual output of the month was 160 units of product V28.A total of 1,300 pounds of the raw material were used to produce this output. The direct materials purchases variance is computed when the materials are purchased. Required: a.What is the materials price variance for the month? b.What is the materials quantity variance for the month?

Wolery 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 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 variable overhead efficiency 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 labor efficiency variance for July is:

Grub Chemical Corporation has developed cost standards for the production of its new cologne, ChocO. The variable cost standards below relate to each 10 gallon batch of ChocO: Variable manufacturing overhead at Grub is applied based on direct labor-hours. The actual results for last month were as follows: -What is ChocO's variable overhead efficiency variance?

The following data have been provided by Liggett Corporation: Lubricants and supplies are both elements of variable manufacturing overhead. -The variable overhead rate variance for supplies is closest to:

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 for April is:

Juhasz Corporation makes a product with the following standards for direct labor and variable overhead: In August the company produced 7,900 units using 4,080 direct labor-hours. The actual variable overhead cost was $15,096. The company applies variable overhead on the basis of direct labor-hours. -The variable overhead efficiency variance for August 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 labor rate variance 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 labor efficiency variance 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 efficiency variance for the month?

Lacrue 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 total standard cost per unit is closest to:

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?

Milar Corporation makes a product with the following standard costs: In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost was $756. 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:

Saxena Corporation makes a product that has the following direct labor standards: The company budgeted for production of 2,900 units in July, but actual production was 2,800 units. The company used 250 direct labor-hours to produce this output. The actual direct labor rate was $14.10 per hour. -The labor efficiency variance for July is:

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 raw materials price variance for the month is closest to: