Exam 11: Standard Costs and Variances

The actual cost of direct labor per hour is $16.00 and the standard cost of direct labor per hour is $15.50.The direct labor hours allowed per finished unit is 0.5 hour.During the current period,5,500 units of finished goods were produced using 3,000 direct labor hours.How much is the direct labor efficiency variance?

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 purchase and usage of direct materials including the related variances.

The Standard Quantity (SQ)of direct materials is calculated as

Cost of goods sold is shown at which of the following on a standard cost income statement?

The ________ variance "measures how well the business keeps prices of direct labor inputs within standards."

MacBeth Fabrics budgeted to manufacture 1,400 curtains in February.Actual output for March was 1,575 curtains with total direct materials cost of $3,400 and total direct labor cost of $5,250.The direct labor standard is 20 minutes per curtain at a direct labor rate of 17.50 per hour.The direct material standard is 0.75 yards of direct materials per curtain at a cost of $13 per pound.Actual direct labor hours were 275.A variance analysis for February may show a direct labor rate variance of

The Armstrong Corporation developed a flexible budget for its production process.Armstrong budgeted to use 16,000 pounds of direct material with a standard cost of $18 per pound to produce 12,000 units of finished product.Armstrong actually purchased 18,000 pounds and used 17,000 pounds of direct material with a cost of $21 per pound to produce 12,000 units of finished product. Given these results,what is Armstrong's direct material price variance?

The Armstrong Corporation developed a flexible budget for its production process.Armstrong budgeted to use 16,000 pounds of direct material with a standard cost of $18 per pound to produce 12,000 units of finished product.Armstrong actually purchased 18,000 pounds and used 17,000 pounds of direct material with a cost of $21 per pound to produce 12,000 units of finished product. Given these results,what is Armstrong's direct material quantity variance?

How is the fixed overhead budget variance calculated?

The managerial accountant at Sailboat World compiles a monthly overhead variance report.The company produced 30,584 sailboats in the past month at 0.28 machine hours per unit.The budgeted fixed overhead cost was $95,000 whereas actual fixed overhead cost was $96,400.Calculate the standard fixed overhead cost allocated to production at $11 per machine-hour.Compute the fixed overhead volume variance and the fixed overhead budget variance.

Madden Corporation manufactures t-shirts,which is its only product.The standards for t-shirts are as follows: During the month of May,the company produced 1,250 t-shirts.Related production data for the month follows: What is the direct materials price variance for the month?

Costanza Manufacturing gathered the following information for the year ended December 31: Prepare a standard cost income statement for Costanza for the year ended December 31.

Because the number of units produced was greater than anticipated,production capacity was used less efficiently than anticipated,resulting in an unfavorable volume variance.

Chemical Supply Incorporated budgeted two and one half hours of direct labor per unit at $11.75 per hour to produce 650 units of product.The 650 units were completed using 1,750 hours of direct labor at $12.50 per hour.What is the direct labor rate variance?

The following information describes a company's usage of direct labor in a recent period: How much is the direct labor efficiency variance?

All of the following are advantages of using standard costs and variances except

Standards should be reviewed and adjusted at least

Luka Company uses the following overhead standard costs for a single unit of product: 7.5 hours at $13.50 per hour.Actual data for the month showed overhead costs of $132,000 for 1,800 units produced.What is the difference between actual overhead costs and standard overhead costs allocated to products?

A direct materials flexible budget variance can be broken down into a price variance and a quantity variance.

An unfavorable direct labor rate variance indicates which of the following?