Exam 11: Standard Costs and Variances

Network Enterprises incurred actual fixed manufacturing overhead costs of $22,800 for the month of September.If the fixed manufacturing overhead budget variance was a favorable $6,700 what were the budgeted fixed overhead costs?

A quantity (efficiency)variance for production inputs (materials and labor)is the difference between the Actual Quantity (AQ)of input used and the standard quantity of input,multiplied by the standard price per unit of input.

A favorable direct labor efficiency variance might indicate that

The direct labor rate variance describes differences in the anticipated (standard)labor rate and the actual labor rate paid.

Jackson Industries has collected the following data for one of its products: What is the actual cost of the Direct Materials Used (AQU)per pound?

Litchfield Industries gathered the following information for the month ended June 31: The static budget volume is 5,500 units: Overhead flexible budget: Actual production was 12,000 units.Actual overhead costs were $28,000 for variable costs and $37,000 for fixed costs.Actual machine hours worked were 16,000 hours. What is the standard variable overhead rate per machine hour?

Michael Corporation manufactures railroad cars,which is its only product.The standards for the railroad cars are as follows: During the month of March,the company produced 1,650 cars.Related production data for the month follows: What is the direct materials price variance for the month?

Culinary Kitchen Supply produces bamboo cutting boards.The standard material cost for the bamboo used in each lamp is $18 per square foot.Each board requires 3 square feet of bamboo.In August,the company produced 1,200 cutting boards.There were 3,400 square feet of bamboo used during the month.The bamboo used had an actual cost $20 per square foot.What was the materials quantity variance in August for bamboo?

The total direct labor variance is the sum of the direct labor rate variance and the direct labor efficiency variance.

A favorable direct materials quantity variance indicates which of the following?

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): What is the standard direct material price per pound for the butter in the cookies?

Shamrock Manufacturing budgeted fixed overhead costs of $2.75 per unit at an anticipated production level of 1,350 units.In July Shamrock incurred actual fixed overhead costs of $4,400 and actually produced 1,300 units. What is Shamrock's fixed overhead volume variance in July?

Litchfield Industries gathered the following information for the month ended June 30: The static budget volume is 5,500 units: Overhead flexible budget: Actual production was 12,000 units.Actual overhead costs were $28,000 for variable costs and $37,000 for fixed costs.Actual machine hours worked were 16,000 hours. What is the fixed overhead volume variance? (Assume the allocation base for fixed overhead costs is machine hours. )

Belle Auto Detailing reported the following results for the past week: What is Belle's direct labor rate variance?

The Dogwood Technology Company managerial accountant computes the May total variance report.The budgeted fixed overhead was $48,580 and the standard fixed overhead cost allocated to production was $45,600.The actual fixed overhead totaled $47,930.Compute the fixed overhead budget variance and the fixed overhead volume variance.

Jackson Industries has collected the following data for one of its products: How much is the direct materials price variance?

Speaker City designs and manufactures high-end home theater speakers.Speaker City uses a standard overhead rate of 3.5 hours per unit at a cost of $9.50 per hour.Data for the month of June shows that Speaker City produced 500 units and recorded actual overhead costs of $19,500.What is the total variable overhead variance for the month of June?

Quinton's Salon cuts men's hair.Labor standards for each cut are as follows: The following data relates to the haircuts during the month of October: What is the labor efficiency variance for the month of October?

Razzle Baking Company gathered the following actual results for the current month: Actual amounts: Budgeted production and standard costs were: What is the direct labor efficiency variance?

The variable overhead rate variance may be caused by variances in the following production inputs except