Exam 11: Standard Costs and Variances

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

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 rate variance in March?

An LCD screen is purchased to be used in the manufacturing of a digital watch.The Standard Price (SP)for the LCD screen used is $40.00.During the month of February,3,400 screens were purchased and used.The materials price variance was $6,000 unfavorable.The standard number of screens allowed for the actual number of watches manufactured during the period was 25,000 screens.The actual purchase price of each LCD screen may be closest to

Perfection standards do not allow for poor-quality raw materials,waste in the production process,machine-breakdown,or other inefficiencies.

The type of standard that provides allowances for normal amounts of waste and inefficiency in the production process is referred to as a(n)

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 efficiency variance in October?

LampLight Industries gathered the following information for the month of July: Overhead flexible budget: LampLight actually produced 14,000 units in 17,500 machine hours.Total actual overhead cost of $85,500 consisted of $35,000 variable costs and $50,500 fixed costs.The standard variable and fixed overhead rates are based on a master (static)budget of 15,000 units.Assume the allocation base for fixed overhead costs is the number of units. A.Compute the total manufacturing overhead cost variance. B.Compute the overhead flexible budget variance. C.Compute the production volume variance.

The two fixed overhead variances are the

A company uses sugar in producing its product.If the price of sugar doubles,which variance is directly impacted?

If a company produces many different products,it will develop a standard cost for each type of product.

Which of the following examples may lead directly to a favorable fixed overhead volume variance?

Howard Industries' actual direct labor cost was $67,000 during the current period.Howard reported an unfavorable direct labor rate variance of $1,800 and a favorable direct labor efficiency variance of $2,900.What was the standard direct labor cost for actual output during the period?

If the Standard Quantity Allowed (SQA)for direct labor is less than the Actual Quantity (AQ)used,the efficiency variance is favorable.

As managers use less and different types of direct materials,which of the following standards do managers focus on to enhance sustainability in the workplace?

A price variance for direct materials measures how well a company keeps unit prices of material within standards.

Mike's Service Station performs oil changes for cars.Each oil change has a standard time of 0.5 direct labor hours.The standard direct labor hour rate is $15.00 per hour.Data relating to oil changes for the month of September follow: What is the labor rate variance for September?

The actual cost of direct labor per hour is $14.75.Two and one half standard direct labor hours are allowed per unit of finished goods.During the current period,2,700 units were produced using 6,500 direct labor hours.The direct labor efficiency variance is $2,500 favorable.Calculate the standard direct labor rate per hour.

The variable overhead efficiency variance is also called the variable overhead spending variance.

Which of the following situations may lead to a favorable direct materials price variance?

Standard costs for production inputs are used to develop flexible budgets.