Exam 9: Standard Costing: a Functional-Based Control Approach

Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labour for the 100 units of Product AA are as follows: Materials: Standard Actual Standard: 200 kilograms at \ 3.00 per kilogram \ 600 Actual: 220 kilograms at \ 2.85 per kilogram \6 27 Direct labour: Standard: 400 hours at \ 15.00 per hour 6,000 Actual: 368 hours at \ 16.50 per hour 6,072 -Refer to the figure.What is the labour efficiency variance for Bender Corporation?

Reynolds Manufacturing Company has the following information pertaining to a normal monthly 10,000 units. Standard factory overhead rates are based on a normal monthly volume of one standard direct hour per unit. Standard factory overhead rates per direct labour hour are: Fixed \ 6.00 Variable 10.00 \1 6.00 Units actually produced in current month 9,000 units Actual factory overhead costs incurred (includes \ 70,000 fixed) \ 156,000 Actual direct labour hours 9000 hours -Refer to the figure.What is the fixed overhead spending variance for Reynolds?

Crawford Company’s standard fixed overhead cost is $6 per direct labour hour based on budgeted fixed costs of $600,000. The standard allows 1 direct labour hour per unit. During 2006, Crawford produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labour. -Refer to the figure. What is Crawford's fixed overhead volume variance for the current year?

A 5 percent wage increase for all factory employees would affect which of the following variances?

What is the formula for the fixed overhead spending variance?

Gina Production Company uses a standard costing system.The following information pertains to the current year: Actual factory overhead costs (\ 16,500 is fixed) \4 0,125 Actual direct labour costs (11,250 hours) \1 31,625 Standard direct labour for 5,500 units: Standard hours allowed 11,000 hours Labour rate \1 2.00 The factory overhead rate is based on an activity level of 10,000 units.Standard cost data for 5,000 units is as follows: Variable factory overhead \ 22,500 Fixed factory overhead Total factory overhead What is the fixed overhead volume variance for Gina Production Company?

During June,12,000 kilograms of materials were purchased at a cost of $8 per kilogram.If there was an unfavourable direct materials price variance of $6,000 for June,what would be the standard cost per kilogram?

Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labour for the 100 units of Product AA are as follows: Materials: Standard Actual Standard: 200 kilograms at \ 3.00 per kilogram \ 600 Actual: 220 kilograms at \ 2.85 per kilogram \6 27 Direct labour: Standard: 400 hours at \ 15.00 per hour 6,000 Actual: 368 hours at \ 16.50 per hour 6,072 -Refer to the figure.What is the material price variance for Bender Corporation?

Spencer Company manufactures a single product that has a standard materials cost of $20 (4 units of materials at $5 per unit), standard direct labour cost of $9 (1 hour per unit), and standard variable overhead cost of $4 (based on direct labour hours). Fixed overhead is budgeted at $17,000 per month. The following data pertain to operations for May: Materials purchased: 8,000 units costing \ 39,400 Materials used in production of 1,500 units of finished 6,200 units of materials product: Direct labour used: 1,500 hours costing \ 15,000 Variable overhead costs incurred: \ 5,960 Fixed overhead costs incurred: \ 17,500 a.Prepare a performance report for Spencer for June using the following headings: 1. Actual Production Costs 2. Flexible Budget Costs 3. Flexible Budget Variances b.Compute the following variances (show calculations): 1. Materials usage variance 2. Labour rate variance 3. Labour efficiency variance 4. Variable overhead spending variance 5. Variable overhead efficiency variance 6. Fixed overhead budget variance c.Give one possible explanation for each of the six variances computed in part (b).

Regis Corporation uses two materials in the production of its product. The materials, $\mathrm{X}$ and $\mathrm{Y}$ , have the following standards: Material Standard Mix Standard Unit Price Standard Cost 3,500 units \ 1.00 per unit \ 3,500 1.500 units 3.00 per unit \ 4.500 Yield 4,000 units $\text { During April, the following actual production information was provided: }$ Material Actual Mix 30,000 units 20,000 units Yield 36,000 units -Refer to the figure.What is the labour yield variance?

Which of the following equations measures the total budget variance?

Regis Corporation uses two materials in the production of its product. The materials, $\mathrm{X}$ and $\mathrm{Y}$ , have the following standards: Material Standard Mix Standard Unit Price Standard Cost 3,500 units \ 1.00 per unit \ 3,500 1.500 units 3.00 per unit \ 4.500 Yield 4,000 units $\text { During April, the following actual production information was provided: }$ Material Actual Mix 30,000 units 20,000 units Yield 36,000 units -Refer to the figure.What is the materials usage variance?

Crawford Company's standard fixed overhead cost is $6 per direct labour hour based on budgeted fixed costs of $600,000.The standard allows one direct labour hour per unit.During 2006,Crawford produced 110,000 units of product,incurred $630,000 of fixed overhead costs,and recorded 212,000 actual hours of direct labour. What is Crawford's fixed overhead spending variance?

Roberts Company uses a standard costing system.The following information pertains to direct materials for the month of July: Standard price per kg \ 18.00 Actual purchase price per kg \ 16.50 Quantity purchased 3,100 Quantity used 2,950 Standard quantity allowed for actual output 3,000 Actual output 1,000 units Roberts Company reports its material price variances at the time of purchase. What is the standard quantity of direct materials per unit for Roberts Company?

When does a mix variance occur?

If actual fixed manufacturing overhead was $54,000 and there was a $1,300 unfavourable spending variance and a $1,000 unfavourable volume variance,what would budgeted fixed manufacturing overhead have been?

During September,40,000 units were produced.The standard quantity of material allowed per unit was 5 kilograms at a standard cost of $2.50 per kilogram.If there was a favourable usage variance of $25,000 for September,what would have been the actual quantity of materials used?

Mover Company has developed the following standards for one of its products: Direct materials: 7.5 kilograms \times\ 8 per kilogram Direct labour: 2 hours \times\ 12 per hour Variable manufacturing overhead: 2 hours \times\ 7 per hour $\text { The following activity occurred during the month of March: }$ Materials purchased: 5,000 kilograms costing \ 42,500 Materials used: 3,600 kilograms Units produced: 500 units Direct labour: 1,150 hours at \ 11.80/ hour Actual variable manufacturing overhead: \ 7,500 The company records materials price variances at the time of purchase. What is the variable standard cost per unit?

Which of the following equations measures a price variance?

Regis Corporation uses two materials in the production of its product. The materials, $\mathrm{X}$ and $\mathrm{Y}$ , have the following standards: Material Standard Mix Standard Unit Price Standard Cost 3,500 units \ 1.00 per unit \ 3,500 1.500 units 3.00 per unit \ 4.500 Yield 4,000 units $\text { During April, the following actual production information was provided: }$ Material Actual Mix 30,000 units 20,000 units Yield 36,000 units -Refer to the figure.What is the labour efficiency variance?