Exam 11: Standard Costs and Variances

The total variable manufacturing overhead variance is composed of the rate variance and the efficiency variance.

The ________ department may be responsible to incur a "direct labor efficiency variance."

Tommy's Toys produces two types of toys: trains and dolls.Tommy's uses stainless steel to manufacture the trains and plastic to manufacture the dolls.Information regarding the usage of steel and plastic for the past year follows: What is the standard direct material price per pound for the plastic in the dolls?

Active Lifestyle Beverages gathered the following information for Job #928: What is the direct materials price variance?

Razzle Baking Company gathered the following actual results for the current month: Budgeted production and standard costs were: What is the direct materials price variance?

The direct materials price variance is calculated as

Standard Products Company recognizes variances from standards at the earliest opportunity,and the quantity of direct materials purchased is equal to the quantity used.The following information is available for the most recent month.Assume the allocation base for fixed overhead costs is the number of units. Journalize the direct labor costs incurred and the assignment of direct labor to Work in Process Inventory,including the related variances.

Piper Corporation,which manufactures dog toys,is developing direct labor standards.The basic direct labor rate is $12.00 per hour.Payroll taxes are 13% of the basic direct labor rate,while fringe benefits such as vacation and health care insurance,are $6.00 per hour.What is the standard rate per direct labor hour?

When auto manufacturer BMW purchased the Rolls-Royce brand name,BMW had to hire and train a new staff of assembly workers.The new workers were paid $25 per hour,worked a total of 7,500 hours,and produced 2,000 cars.BMW budgeted for a standard labor rate of $27 per hour and 1.25 direct labor hours per car.What is the direct labor efficiency variance for the Rolls-Royce division?

The Southside Corporation budgeted 4,400 pounds of direct materials to make 2,600 units of product.The company actually used 4,800 pounds of direct materials to make the 2,600 units.The direct materials quantity variance is $1,500 unfavorable.What is the Standard Price (SP)per pound of direct materials?

LVN Corporation's direct labor costs and related information for the month of June were as follows: What is LVN Corporation's direct labor efficiency variance?

Which variance is directly impacted if a worker drops the raw material during production and the raw material must be discarded?

Capital Manufacturing designs and manufactures bathtubs for home and commercial applications.Capital recorded the following data for its commercial bathtub production line during the month of March: What is the variable manufacturing overhead efficiency variance in March?

Dozen Bakery makes cupcakes and cookies.Dozen gathered the following information for the current year regarding its use of flour and butter (flour is a direct material for cupcakes and butter is a direct material for cookies): The actual direct material quantity used per batch for Cupcakes may be closest to

How is the direct labor rate variance calculated?

How is the variable manufacturing overhead efficiency variance calculated?

The direct labor efficiency variance tells managers how much of the total labor variance is due to using a greater or lesser amount of time than anticipated.

Standard Products Company recognizes variances from standards at the earliest opportunity,and the quantity of direct materials purchased is equal to the quantity used.The following information is available for the most recent month.Assume the allocation base for fixed overhead costs is the number of units. Journalize the allocation of overhead costs to Work in Process Inventory and closing manufacturing overhead costs to overhead variances.

Ideal standards allow for a normal amount of waste and inefficiency.

River Mills manufactures reproduction antique furniture using historic manufacturing methods.River often uses waterpower,which is not only historically accurate,but also saves energy costs.Although River uses old-fashioned manufacturing techniques it is still a modern company that performs modern business analysis.River incurred actual fixed manufacturing overhead costs of $286,000.Using standard costing,River allocated $225,000 in fixed manufacturing overhead costs.If River observed a $2,125 unfavorable fixed manufacturing overhead volume variance,what amount had management budgeted for fixed manufacturing overhead?