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 labor rate variance for June 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 materials (milk chocolate)price variance?

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 quantity variance for the month 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 quantity 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 raw materials price variance for the month is closest to:

Sakelaris 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. 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.

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 labor rate variance for June is:

Material price variances are often isolated at the time materials are purchased,rather than when they are placed into production,to facilitate earlier recognition of variances.

Jungman 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 produced 4,600 units of this product in November. Required: a.What is the total standard cost of one unit of this product? b.What was the standard ounces allowed for the actual output of this product in November? c.What was the standard hours allowed for the actual output of this product in November?

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 rate variance for June is:

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 indirect labor is closest to:

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

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 labor efficiency variance for June 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 efficiency variance for the month?

The production department should generally be responsible for materials price variances that resulted from:

Piper Corporation's standards call for 1,000 direct labor-hours to produce 250 units of product.During October the company worked 1,250 direct labor-hours and produced 300 units.The standard hours allowed for October would be:

The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: -The labor efficiency variance for November 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 standard number of machine-hours allowed for July production 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 raw materials quantity variance for the month is closest to:

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