Exam 10: Standard Costs and Variances

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 variable overhead rate variance for August is:

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 price variance for the month is closest to:

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 rate variance is:

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 variable overhead rate variance for the month is closest to:

The Haney Corporation has a standard costing system.Variable manufacturing overhead is applied on the basis of direct labor-hours.The following data are available for January: • Actual variable manufacturing overhead: $25,500 • Actual direct labor-hours worked: 5,800 • Variable overhead rate variance: $600 Favorable • Variable overhead efficiency variance: $2,475 Unfavorable The standard hours allowed for January production is:

At Eady Corporation,maintenance is a variable overhead cost that is based on machine-hours.The performance report for July showed that actual maintenance costs totaled $8,650 and that the associated rate variance was $250 unfavorable.If 5,000 machine-hours were actually worked during July,the standard maintenance cost per machine-hour was:

If variable manufacturing overhead is applied based on direct labor-hours,it is impossible to have a favorable labor rate variance and unfavorable variable overhead rate variance for the same period.

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 rate variance for January 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?

Viger Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs).The company has provided the following data for the most recent month: What was the variable overhead rate variance for the month?

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 variable overhead efficiency variance for August is:

The labor efficiency variance is labeled favorable (F)if the actual hours used is less than the standard hours allowed for the actual output.

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. Required: a.What is the materials price variance for the month? b.What is the materials quantity variance for the month?

The following data have been provided by Lopus Corporation: Required: Compute the variable overhead rate variances for lubricants and for supplies.Indicate whether each of the variances is favorable (F)or unfavorable (U).Show your work!

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 labor rate variance for August is:

Leonesio Corporation makes a product that uses a material with the following standards: The company budgeted for production of 3,100 units in August, but actual production was 3,200 units. The company used 27,600 kilos of direct material to produce this output. The company purchased 29,000 kilos of the direct material at a total cost of $118,900. The direct materials purchases variance is computed when the materials are purchased. -The materials price variance for August is:

The labor rate variance measures the difference between the actual hourly rate and the standard hourly rate,multiplied by the standard hours allowed for the actual output.

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 rate variance for January is:

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

Descamps 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: