Exam 9: Flexible Budgets Standard Costs and Variance Analysis

The standard labor rate per hour should not include any employment taxes.

Palmerton Corporation is an oil well service company that measures its output by the number of wells serviced.The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for December. When the company prepared its planning budget at the beginning of December, it assumed that 40 wells would have been serviced.However, 45 wells were actually serviced during December. The variance for net operating income in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for December would have been closest to:

Waste on the production line will result in an unfavorable materials price variance.

Kirkeby 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. When the company prepared its planning budget at the beginning of May, it assumed that 32 containers would have been refurbished.However, 34 containers were actually refurbished during May. The "Refurbishing materials" in the flexible budget for May would have been closest to:

Lido Company's standard and actual costs per unit for the most recent period, during which 500 units were actually produced, are given below: All of the materials purchased during the period were used in production during the period. Required: From the foregoing information, compute the following variances.Indicate whether the variance is favorable (F)or unfavorable (U): a.Material price variance. b.Material quantity variance. c.Labor rate variance. d.Labor efficiency variance. e.Variable overhead rate variance. f.Variable overhead efficiency variance.

The variable overhead rate variance for the month is closest to:

During September, Ferman Clinic budgeted for 3,800 patient-visits, but its actual level of activity was 4,100 patient-visits.The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits: Revenue: $21.60q Personnel expenses: $22,600 + $6.60q Medical supplies: $1,000 + $2.60q Occupancy expenses: $6,000 + $0.90q Administrative expenses: $4,300 + $0.30q Required: Prepare the clinic's flexible budget for September based on the actual level of activity for the month.

The variable overhead rate variance for the month is closest to:

What is the variable overhead rate variance for the month?

The labor efficiency variance for August is:

The direct materials in the flexible budget for January would be closest to:

Dermody Snow Removal's cost formula for its vehicle operating cost is $2,850 per month plus $317 per snow-day.For the month of December, the company planned for activity of 16 snow-days, but the actual level of activity was 14 snow-days.The actual vehicle operating cost for the month was $7,640.The spending variance for vehicle operating cost in December would be closest to:

The selling and administrative expenses in the planning budget for October would be closest to:

The direct labor in the planning budget for December would be closest to:

The variable overhead rate variance for the month is closest to:

The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the labor efficiency variance for the month?

The labor rate variance for the month is closest to:

Mcphail Inc.has a standard cost system.The standards for direct materials for one of its products specify 6.6 grams of a particular input per unit of output at a standard cost of $7.40 per gram.The company has reported the following actual results for the product for September: Required: a.Compute the materials price variance for this input for September. b.Compute the materials quantity variance for this input for September.

What is ChocO's materials (milk chocolate)price variance?

Bailey Corporation manufactures orange safety suits for road workers.The following information relates to the corporation's purchases and use of material for April: The company's materials price variance for April was $3,000 Favorable.Its materials quantity variance for April was $5,000 Favorable.What does the company use as a standard price per yard of material for its safety suits?