Exam 9: Flexible Budgets Standard Costs and Variance Analysis

Duboise Corporation makes a product with the following standard costs: The company reported the following results concerning this product in October. The materials price variance is recognized 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.

The spending variance for direct materials in May would be closest to:

The labor efficiency variance for October is:

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

The net operating income in the planning budget for February would be closest to:

The total cost at the activity level of 9,400 patient-visits per month should be:

Dreckman Corporation is a service company that measures its output by the number of customers served.The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for August. When the company prepared its planning budget at the beginning of August, it assumed that 36 customers would have been served.However, 31 customers were actually served during August. The "Other expenses" in the flexible budget for August would have been closest to:

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?

The medical supplies in the flexible budget for June would be closest to:

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.

The variable overhead rate variance for November is:

The labor efficiency variance for the month is closest to:

The "Servicing materials" in the flexible budget for October would have been closest to:

The labor efficiency variance for May is:

The labor efficiency variance for June is:

Smith Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished.The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for February. When the company prepared its planning budget at the beginning of February, it assumed that 31 containers would have been refurbished.However, 26 containers were actually refurbished during February. Required: Prepare a report showing the company's revenue and spending variances for February.Indicate in each case whether the variance is favorable (F)or unfavorable (U).

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

The labor rate variance for May is:

The variable overhead efficiency variance for March is:

Speyer Medical Clinic measures its activity in terms of patient-visits.Last month, the budgeted level of activity was 1,530 patient-visits and the actual level of activity was 1,490 patient-visits.The cost formula for administrative expenses is $4.00 per patient-visit plus $15,300 per month.The actual administrative expense was $19,810.Last month the clinic's spending variance for administrative expenses was: