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

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 material usage variance for Roberts Company?

In setting quantity standards,what factor(s)must the purchasing manager consider?

Bread Company has developed the following standards for one of its products. Direct materials: 10 kilograms \times\ 3 per kilogram Direct labour: 2.5 hours \times\ 8 per hour Variable manufacturing overhead: 2.5 hours \times\ 2 per hour The following activity occurred during the month of June Materials purchased: 125,000 kilograms at \ 2.60 per kilogram Materials used: 110,000 kilograms Units produced: 10,000 units Direct labour: 24,000 hours at \ 7.50 per hour Actual variable manufacturing overhead: \ 51,000 The company records materials price variances at the time of purchase. What is the direct labour rate 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 journal entry to record material purchases? a. Materials 55,800 Accounts Payable 55,800 b. Accounts Payable 55,800 Materials 55,800 c. Materials 55,800 Materials Price Variance 4,650 Accounts Payable 51,150 d. Materials 51,150 Materials Price Variance 4,650 Accounts Payable 55,800

Which of the following factors would cause an unfavourable labour rate variance?

Which departments are responsible for quantity standards?

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 the fixed overhead spending variance for Griffen?

Starling Manufacturing has developed the following standards for one of its products. SIANDARD VARIABLE COSI CARD One Unit of Product Materials: 5 metres \times\ 6 per metre \ 30.00 Direct labour: 2 hours \times\ 8 per hour 16.00 Variable manufacturing overhead: 2 hours \times\ 5 per hour 10.00 Total standard variable cost per unit \ 56.00 The company records materials price variances at the time of purchase. The following activity accured during the month of December: Materials purchased: 5,200 metres costing \ 29,900 Materials used: 4,750 metres Units produced: 1,000 urits Direct labour: 2,100 hours costing \ 17,850 a.Calculate the direct materials price variance. b.Calculate the direct materials usage variance. c.Calculate the direct labour rate variance. d.Calculate the direct labour efficiency variance.

What is the term for the standard overhead cost assigned to each unit of product manufactured?

What is standard costing?

Fixed manufacturing overhead was budgeted at $200,000,and 25,000 direct labour hours were budgeted.If the fixed overhead volume variance was $8,000 favourable and the fixed overhead spending variance was $6,000 unfavourable,what would be the fixed manufacturing overhead applied?

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 the variable overhead efficiency variance for Griffen?

Fixed manufacturing overhead was budgeted at $105,000,and 25,000 direct labour hours were budgeted.If the fixed overhead volume variance was $4,000 unfavourable and the fixed overhead spending variance was $1,500 favourable,what would be the fixed manufacturing overhead applied?

What do quantity price standards specify?

As a general rule,under what circumstances should an investigation of a variance be undertaken?

Which of the following standards demand maximum efficiency and can be achieved only if everything operates perfectly?

If the actual labour rate exceeds the standard labour rate and the actual labour hours exceed the number of hours allowed,what will be the labour rate variance and labour efficiency variance? $\underline{\text { Labour Rate Variance }} \quad \underline{\text { Labour Efficiency Variance }}$ A) Favourable Favourable B) Favourable Unfavourable C) Unfavourable Favourable D) Unfavourable Unfavourable

What may cause an unfavourable variable overhead spending variance?

Which of the following is an acceptable method of disposing of variances?

Which of the following might cause a variable overhead efficiency variance?