Exam 11: Standard Costs and Variances

The actual cost of direct labor per hour is $16.00 and the standard cost of direct labor per hour is $9.50. The direct labor hours allowed per finished unit is 0.25 hour. During the current period, 5700 units of finished goods were produced using 3500 direct labor hours. How much is the direct labor efficiency variance?

The direct materials flexible budget variance can be divided into which of the following two variances?

LVN Corporation's direct labor costs and related information for the month of June were as follows: What is LVN Corporation's direct labor efficiency variance?

The Berwin Company established a master budget volume of 35,000 units for April. Actual overhead costs incurred amounted to $98,500. Actual production for the month was 34,000 units. The standard variable overhead rate was $1.75 per direct labor hour. The standard fixed overhead rate was $1.50 per direct labor hour. One direct labor hour is the standard quantity per finished unit. Assume the allocation base for fixed overhead costs is the number of direct labor hours. A. Compute the total manufacturing overhead cost variance. B. Compute the overhead flexible budget variance. C. Compute the production volume variance.

The direct labor rate variance describes differences in the anticipated (standard)labor rate and the actual labor rate paid.

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 1900 t-shirts. Related production data for the month follows: What is the direct materials quantity variance for the month?

A favorable direct labor efficiency variance might indicate that

Historic Restoration Company budgeted 33.0 hours of direct labor per unit at $14.75 per hour to produce 300 replica door knobs. The 300 knobs were completed using 1100. hours of direct labor at $13.75 per hour. What is the direct labor rate variance?

Candy Factory uses the following standard costs for a single unit of product: Actual data for the month showed overhead costs of $475,000 for 26,300 units produced. What is the difference between actual overhead costs and standard overhead costs allocated to products?

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 25 slides. Budgeted and actual production data follows: What is the fixed manufacturing overhead volume variance in this period?

Happy Helpers Maid Service is calculating its standard direct labor rate. The direct labor rate is $19 per hour. Happy Helpers incurs payroll tax expense of 12% of the direct labor rate and incurs costs for sick-days and vacation days of $3 per hour. What is the standard rate per direct labor hour?

If the actual number of units produced is less than the number of units budgeted to produced, then the fixed overhead volume variance will always be unfavorable.

Superior Corporation reports the following standards for direct labor for the year: During the year, 35,000 finished goods were produced. The direct labor efficiency variance was $2,650 favorable. The direct labor flexible budget variance was $550 favorable. Calculate the following items regarding direct labor for Superior Corporation for the year: A. Direct labor rate variance B. Standard hours of direct labor for actual production C. Actual hours of direct labor incurred for actual production

The standard cost of direct labor per hour is $15.00. Two and one half standard direct labor hours are allowed per unit of finished goods. During the current period, 80 units were produced using 1850 direct labor hours. The direct labor rate variance is $1100 unfavorable. Calculate the actual cost of direct labor per hour.

Justin Time Guitars manufactures electric guitars. The following data relate to the standards for direct labor: Justin Time had the following actual results for March: What is the direct labor efficiency variance for March?

A debit balance means that a variance is favorable since it decreases income (just like a expense).

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

Network Enterprises incurred actual fixed manufacturing overhead costs of $20,800 for the month of September. If the fixed manufacturing overhead budget variance was a favorable $6600 what were the budgeted fixed overhead costs?

Fitness Bands Corporation gathered the following information for Job #928: What is the direct materials price variance?

A standard cost income statement shows cost of goods sold at standard and then actual cost.