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 1800 cars. Related production data for the month follows: What is the direct materials price variance for the month?

Work in process inventory is debited for which of the following when recording the use of direct materials in the production process?

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 $62,100 and the budgeted fixed overhead cost was $63,300. The standard hours in August were 3300 and the standard rate per machine-hour was $19. Calculate the standard fixed overhead cost allocated to production, the fixed overhead budget variance, and the fixed overhead volume variance.

Squeaky Clean produces commercial strength cleansing supplies. Two of its main products are window cleanser that uses ammonia, and floor cleanser that uses bleach. Information for the most recent period follows: What is the direct material quantity variance for the bleach?

A(n)________ "arises because the number of units actually sold differs from the static budget units."

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): The actual direct material quantity used per batch for Cupcakes may be closest to

The Southside Corporation budgeted 4600 pounds of direct materials to make 2700 units of product. The company actually used 5700 pounds of direct materials to make the 2700 units. The direct materials quantity variance is $1200 unfavorable. What is the Standard Price (SP)per pound of direct materials?

Monty Manufacturing builds playground equipment that it sells to elementary schools and municipalities. Monty's management has contracted you to perform a variance analysis on the fixed manufacturing overhead for its line of slides. Monty's cost accounting team informs you that it allocates fixed overhead based on machine hours. This period production was budgeted at 35 slides. Budgeted and actual production data follows: What is the fixed manufacturing overhead budget variance in this period?

Standards should be reviewed and adjusted at least

Litchfield Industries gathered the following information for the month ended June 30: The static budget volume is 3000 units: Overhead flexible budget: Actual production was 6500 units. Actual overhead costs were $22,000 for variable costs and $39,000 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.)

A price variance for production inputs is the difference between the actual unit price of an input and the standard unit price of the input, multiplied by the actual input quantity.

Keegan Inc. budgeted 10,800 pounds of direct materials costing $16.50 per pound to make 5100 units of product. The company actually purchased 10,900 pounds of direct materials costing $25.00 per pound to make the 5100 units. What is the direct materials quantity variance?

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 budget 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?

How is the variable manufacturing overhead efficiency variance calculated?

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

The standard cost of direct materials per unit is calculated by

Trendy T's 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 1050 t-shirts. Related production data for the month follows: What is the direct labor rate variance for the month?

Which variance is directly impacted if the employees who build the product go on strike and temporary workers who are slower and not as skilled are hired?

The variable manufacturing overhead (MOH)efficiency variance is calculated as Actual Hours × (Actual Rate - Standard Rate).