Exam 10: Standard Costs and Variances

Kartman Corporation makes a product with the following standard costs: In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931. 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 efficiency variance for June is:

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 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 efficiency variance for January is:

Dibert 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 February: -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 materials quantity variance for October is:

Amirault Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs)at $4.00 per MH.During the month,the actual total variable manufacturing overhead was $18,040 and the actual level of activity for the period was 4,100 MHs.What was the variable overhead rate variance for the month?

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 efficiency variance for July 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: -What is the variable overhead efficiency variance for the month?

The materials price variance for January is:

The general model for calculating a quantity variance is:

Warp Manufacturing Corporation uses a standard cost system for the production of its ski lift chairs.Warp uses machine-hours as an overhead base.The variable manufacturing overhead standards for each chair are 1.2 machine-hours at a standard cost of $18 per hour. During the month of September,Warp incurred 34,000 machine-hours in the production of 32,000 ski lift chairs.The total variable manufacturing overhead cost was $649,400.What is Warp's variable overhead rate variance for September?

When more hours of labor time are necessary to complete a job than the standard allows,the labor efficiency variance is unfavorable.

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 variable overhead efficiency variance for January is:

Valera Corporation makes a product with the following standards for labor and variable overhead: The company budgeted for production of 5,300 units in July, but actual production was 5,400 units. The company used 2,130 direct labor-hours to produce this output. The actual variable overhead rate was $6.10 per hour. The company applies variable overhead on the basis of direct labor-hours. -The variable overhead rate variance for July is:

Wadding Corporation applies manufacturing overhead to products on the basis of standard machine-hours.For the most recent month,the company based its budget on 3,600 machine-hours.Budgeted and actual overhead costs for the month appear below: The company actually worked 3,900 machine-hours during the month.The standard hours allowed for the actual output were 3,890 machine-hours for the month.What was the overall variable overhead efficiency variance for the month?

The Fime Corporation uses a standard costing system.The following data have been assembled for December: The standard hours allowed for December's production is:

Majer Corporation makes a product with the following standard costs: The company reported the following results concerning this product in February. 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 February is:

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 labor efficiency variance for January is:

Bressman 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 May: -The variable overhead rate variance for the month is closest to:

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 labor efficiency variance for the month is closest to: