Exam 11: Standard Costs and Variances

Enter the letters of the items needed to compute that variance on the line in front of each variance. You can enter more than one item on each line as applicable. A. Standard overhead allocated to production B. Flexible budget overhead for actual number of outputs C. Actual variable overhead cost D. Fixed overhead costs ________ Manufacturing overhead (MOH)flexible budget variance ________ Production volume variance

All of the following are advantages of using standard costs and variances except

How is the variable overhead rate variance calculated?

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

Riverside Manufacturing designs and manufactures bathtubs for home and commercial applications. Riverside 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?

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?

Managers will want to use management by exception to determine which variances are significant enough to warrant investigation.

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

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

Akron Clay Company manufactures flowerpots. The following data relate to the standards for direct labor: Akron Clay Company had the following actual results for April: What is the direct labor efficiency variance for April?

The total variable manufacturing overhead variance is composed of the rate variance and the efficiency variance.

Sole Purpose manufactures beach shoes that use a canvas as the main raw material. Data related to the shoes for June follows: What is the materials quantity variance for canvas for June?

Standard Products Company recognizes variances from standards at the earliest opportunity, and the quantity of direct materials purchased is equal to the quantity used. The following information is available for the most recent month. Assume the allocation base for fixed overhead costs is the number of units. Journalize the allocation of overhead costs to Work in Process Inventory and closing manufacturing overhead costs to overhead variances.

The actual cost of direct labor per hour is $16.00. Two and one half standard direct labor hours are allowed per unit of finished goods. During the current period, 2700 units were produced using 6500 direct labor hours. The direct labor efficiency variance is $3100 favorable. Calculate the standard direct labor rate per hour.

Quinton's Salon cuts men's hair. Labor standards for each cut are as follows: The following data relates to the haircuts during the month of October: What is the labor efficiency variance for the month of October?

Fabulous Fabrics budgeted to manufacture 1900 curtains in February. Actual output for March was with total direct materials cost of $3400 and total direct labor cost of $5550. The direct labor standard is 20 minutes per curtain at a direct labor rate of $15.00 per hour. The direct material standard is 0.75 yards of direct materials per curtain at a cost of $10 per pound. Actual direct labor hours were 275. A variance analysis for February may show a direct labor rate variance of (Round any intermediary calculations and your final answer to the nearest cent.)

The ________ is the difference between the actual machine hours run and the standard machine hours allowed for the actual production volume.

A favorable direct labor efficiency variance and an unfavorable direct labor rate variance might indicate which of the following?

Theresa Corporation, which manufactures baskets, is developing direct labor standards. The basic direct labor rate is $21.00 per hour. Payroll taxes are 9% of the basic direct labor rate, while fringe benefits such as vacation and health care insurance, are $4.00 per hour. What is the standard rate per direct labor hour?

Puget Company has gathered the following information about its purchase and use of raw materials for December: Puget Company uses a standard cost system. What is the materials price variance?