Exam 11: Standard Costs and Variances

The direct materials price variance tells managers how much of the total variance is due to paying higher or lower prices than expected for the direct materials purchased.

The Perry Corporation recorded the following budgeted and actual information relating to fixed overhead costs for its Z-Line of products: What is Perry's fixed manufacturing overhead volume variance?

Ayers Company reports the following standards for direct materials for the year: During the year,460,000 finished goods were produced.The direct materials price variance was $14,200 unfavorable.The direct materials flexible budget variance was $980 favorable. Calculate the following items regarding direct materials for Ayers Company for the year: a.Direct materials quantity variance b.Standard quantity of direct materials for actual production c.Actual pounds of Actual Quantity Direct Materials Used (AQU)for actual production

Miller Manufacturing Corporation has the following information regarding direct materials: Compute Miller's Standard Price (SP)per pound and Actual Price (AP)per pound of direct materials.

Akron Clay Company manufactures flowerpots.The following data relate to the standards for direct labor: Akron Clay Company had the following actual results for April: What is the direct labor efficiency variance for April?

The ________ tells managers how much of the overall variance id due to paying a higher or lower price than expected for the quantity of materials it purchased.

McNabb Corporation makes shoe polish.The standard direct materials quantity is .5 pounds per container at a cost of $2.25 per pound.The actual usage for the production of 33,000 containers was .55 pounds per cushion at an actual cost of $2.20 per pound.Calculate the direct materials price variance and the direct materials quantity 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 direct materials flexible budget variance for steel used to manufacture the trains?

Fabian Fabrication machines heavy-duty brake rotors that are used on commercial airliners.Fabian's management developed the following standard costs: Actual activity for October: What is the variable manufacturing overhead rate variance in October?

If the purchasing manager purchased a greater quantity of raw materials than budgeted,but paid the Standard Price (SP),which variance may be affected?

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

Valley View Company produces hiking boots.The direct labor standard for each pair of boots is 1 hour at a cost of $20.00 per direct labor hour.During the month of May,Valley View Company used 2,500 direct labor hours to produce 2,350 pairs of boots.Total direct labor cost for May was $48,000.What is the labor rate variance for May?

The variable overhead rate variance tells managers whether more or less was spent on variable overhead than they expected for the hours worked.

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

Kahn Performance Nutrition produces a protein shake which contains whey protein as one of its ingredients.The whey protein (materials)standards for each batch of protein shake produced are 12 pounds of whey protein at a standard cost of $3.00 per pound.During July,Kahn Performance Nutrition purchased and used 54,000 pounds of whey protein at a total of $170,000 to make a total of 4,300 batches of protein shake.What is the materials quantity variance for whey protein in July?

Sandy's Sauces,which produces stir-fry sauces,is developing direct material standards.Each bottle of sauce requires 0.70 kilograms of base.The allowance for waste is 0.05 kilograms per bottle,while the allowance for rejects is 0.09 kilograms per bottle.What is the standard quantity of base per bottle?

Direct labor standards are becoming less relevant to many companies due to the shift towards automated production processes.

The managerial accountant at Space Right Office Cubicles calculates fixed overhead variances to complete the August report.The actual fixed overhead cost in the month of August was $56,400 and the budgeted fixed overhead cost was $58,100.The standard hours in August were 3,200 and the standard rate per machine-hour was $18.Calculate the standard fixed overhead cost allocated to production,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 quantity variance?

The variable overhead rate variance is also known as which of the following?