Exam 11: Standard Costs and Variances

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 1750 cars. Related production data for the month follows: What is the direct materials quantity variance for the month?

Yummy-Tummy Foods has the following information about its standards and production activity for November: Assume the allocation base for fixed overhead costs is the number of units to be produced. How much are the standard overhead costs allocated to actual production?

Coltrane Music manufactures musical instrument for sale to students and professionals. The information for one of Coltrane's most popular products, professional saxophones, follows: What is the labor rate variance for saxophones?

Kalanja Designs, which produces earrings, is developing direct material standards. Each earring requires 0.32 kilograms of a special metal. The allowance for waste is 0.70 kilograms per earring, while the allowance for rejects is 0.10 kilograms per earring. What is the standard quantity of metal per earring?

Raw material, ruined through mistakes during production, results in a materials quantity variance.

Easel Manufacturing budgeted fixed overhead costs of $3.75 per unit at an anticipated production level of 1150 units. In July Easel incurred actual fixed overhead costs of $4500 and actually produced 1100 units. What is Easel's fixed overhead budget variance for July?

On the line in front of each variance, enter the letters of the items needed to compute that variance. You will enter more than one item on each line. A. Actual Price (AP) B. Actual Quantity (AQ) C. Standard Price (SP) D. Standard quantity ________ Direct materials price variance ________ 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?

Regarding a standard cost income statement, which of the following is true?

Weissfeld Corporation manufactures a single product. The direct materials standard calls for 5 pounds of direct material per unit. The standard for direct material cost per pound is $10. A computer error has wiped out the records for the direct labor standards but the following information is found for the month of October: Required: a. Calculate the number of pounds of direct materials purchased and used during October. b. Calculate the materials quantity variance. c. Calculate the standard direct labor rate per hour. d. Calculate the standard direct labor hours allowed for October's production.

How would you describe the Standard Hours Allowed?

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.

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 $20 per hour, worked a total of 7600 hours, and produced 1700 cars. BMW budgeted for a standard labor rate of $26 per hour and 2.25 direct labor hours per car. What is the direct labor efficiency variance for the Rolls-Royce division?

Belle Auto Detailing reported the following results for the past week: What is Belle's direct labor rate variance? (Round intermediary calculations to two decimal places.)

Trendy T's 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 1200 t-shirts. Related production data for the month follows: What is the direct materials price variance for the month?

Coach Industries reported the following results from its most recent quarter: What is Coach's direct material quantity variance?

The managerial accountant at Matheson Tool Company is compiling a fixed overhead volume variance report. According to the data, 4,200 standard hours were tallied at $8 per machine hour, the fixed overhead volume variance was calculated at $2,860 U. Compute the budgeted fixed overhead cost at $2,860U and compare the budgeted fixed overhead cost if the fixed overhead volume variance was $2,860F.

The Ticktock Corporation produces clocks. According to company standards, it should take 2 hours of direct labor to produce a clock. Ticktock's standard labor cost is $10 per hour. During June, Ticktock produced 5600 stopwatches and used 14,000 hours of direct labor at a total cost of $266,000. What is Ticktock's direct labor rate variance for June?

The actual cost of direct labor per hour is $18.00 and the standard cost of direct labor per hour is $9.00. The direct labor hours allowed per finished unit is 0.25 hour. During the current period, 5500 units of finished goods were produced using 2500 direct labor hours. How much is the direct labor rate variance?

Circumstances can occur that result in favorable direct materials price variances and unfavorable direct materials quantity variances.