Exam 10: Standard Costs and Variances

An unfavorable materials quantity variance occurs when the actual quantity used in production is less than the standard quantity allowed for the actual output of the period.

A quantity standard indicates how much of an input should be used to make a unit of product or provide a unit of service.

A favorable labor rate variance indicates that

Creger Corporation,which makes landing gears,has provided the following data for a recent month: Required: Determine the rate and efficiency variances for the variable overhead item supplies and indicate whether those variables are favorable or unfavorable.Show your work!

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 lubricants is closest to:

Poorly trained workers could have an unfavorable effect on which of the following variances?

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 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 labor rate variance for July 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 materials price variance for February 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 efficiency variance for the month is closest to:

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 rate variance for March is:

The following standards have been established for a raw material used to make product O84: The following data pertain to a recent month's operations: 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?

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: The direct materials purchases variance is computed when the materials are purchased. -What is the materials quantity variance for the month?

Bondi Corporation makes automotive engines.For the most recent month,budgeted production was 1,500 engines.The standard power cost is $3.10 per machine-hour.The company's standards indicate that each engine requires 9.3 machine-hours.Actual production was 1,800 engines.Actual machine-hours were 15,860 machine-hours.Actual power cost totaled $51,593. Required: Determine the rate and efficiency variances for the variable overhead item power cost and indicate whether those variances are unfavorable or favorable.Show your work!

Thyne 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:

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 efficiency variance for the month is closest to:

Tharaldson Corporation makes a product with the following standard costs: The company reported the following results concerning this product in June. 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 June 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 variable overhead rate variance for February is:

If demand is insufficient to keep everyone busy and workers are not laid off,a favorable (F)labor efficiency variance often will be a result.

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