Exam 11: Standard Costs and Variances

The actual cost of direct materials is $47.50 per pound. The standard cost per pound is $51.75. During the current period, 7200 pounds were used in production. The standard quantity for actual units produced is 7100 pounds. How much is the direct materials price variance?

Oliver Enterprises has collected the following data for one of its products: How much is the direct materials price variance?

When deciding whether or not to adopt standard costs and perform variance analysis, management should do which of the following?

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

Just as in job costing, the manufacturing costs flow through the inventory accounts in the following order: raw materials → work in process → cost of goods sold → finished goods.

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

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

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

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 11 pounds of whey protein at a standard cost of $5.00 per pound. During July, Performance Nutrition purchased and used 55,000 pounds of whey protein at a total of $198,000 to make a total of 3500 batches of protein shake. What is the materials quantity variance for whey protein in July?

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

A favorable direct materials quantity variance indicates which of the following?

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

DOT Safety Systems manufactures motorcycle helmets. What is the standard quantity of material used to manufacture each helmet if the material required is 1.00 pounds, and DOT allows for 0.21 pounds of waste and 0.28 pounds of rejected material?

Easel Manufacturing budgeted fixed overhead costs of $2.50 per unit at an anticipated production level of 1400 units. In July Easel incurred actual fixed overhead costs of $3700 and actually produced 1100 units. What is Easel's fixed overhead volume variance in July?