Exam 10: Standard Costs and Variances

Miguez Corporation makes a product with the following standard costs: The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 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 September is:

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 standard hours allowed for the actual output 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 July is:

Hardigree Corporation makes a product that has the following direct labor standards: In May the company's budgeted production was 8,900 units, but the actual production was 8,800 units. The company used 2,820 direct labor-hours to produce this output. The actual direct labor cost was $70,218. -The labor efficiency variance for May 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 rate variance for August 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?

Doby Corporation makes a product with the following standard costs: In July the company produced 4,800 units using 13,450 ounces of the direct material and 970 direct labor-hours.During the month the company purchased 14,600 ounces of the direct material at a price of $7.20 per ounce.The actual direct labor rate was $16.20 per hour and the actual variable overhead rate was $5.40 per hour.The materials price variance is computed when materials are purchased.Variable overhead is applied on the basis of direct labor-hours. Required: a.Compute the materials quantity variance. b.Compute the materials price variance. c.Compute the labor efficiency variance. d.Compute the labor rate variance. e.Compute the variable overhead efficiency variance. f.Compute the variable overhead rate variance.

Boldrin Inc.has a standard cost system.The standards for direct labor for one of its products specify 0.20 hours per unit at $18.70 per hour.The company has reported the following actual results for the product for August: Required: a.Compute the labor rate variance for August. b.Compute the labor efficiency variance for August.

Highfill Corporation's variable overhead is applied on the basis of direct labor-hours.The standard cost card for product D80D specifies 8.4 direct labor-hours per unit of D80D.The standard variable overhead rate is $5.60 per direct labor-hour.During the most recent month,800 units of product D80D were made and 6,800 direct labor-hours were worked. The actual variable overhead incurred was $41,140. Required: a.What was the variable overhead rate variance for the month? b.What was the variable overhead efficiency variance for the month?

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 materials quantity variance for June is:

Mirabito 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: Required: a.Compute the materials price variance for December. b.Compute the materials quantity variance for December. c.Compute the labor rate variance for December. d.Compute the labor efficiency variance for December. e.Compute the variable overhead rate variance for December. f.Compute the variable overhead efficiency variance for December.

Information on Westcott Corporation's direct labor costs for a recent month follows: What were the actual hours worked during the month,rounded to the nearest hour?

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 materials quantity variance for June is:

Suver Corporation has a standard costing system.The following data are available for June: The actual price per pound of direct materials purchased in June was:

Krizun Industries makes heavy construction equipment.The standard for a particular crane calls for 20 direct labor-hours at $24 per direct labor-hour.During a recent period 875 cranes were made.The labor efficiency variance was $1,200 Unfavorable.How many actual direct labor-hours were worked?

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 efficiency variance for the month is closest to:

The following information relates to the direct labor at Padmaja Manufacturing,Inc.for March: During March,Padmaja produced 2,100 units.What is Padmaja's labor efficiency variance for March?

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 price variance for the month?

Hofbauer 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 labor rate variance for the month is closest to:

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 materials price variance for June is: