Exam 11: Standard Costs and Variances

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): What is the direct material quantity variance for butter in the cookies?

The ________ department may be responsible to incur a "sales volume variance."

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): What is the direct materials flexible budget variance for the flour in cupcakes?

Ayers Company reports the following standards for direct materials for the year: a. Direct materials quantity variance b. Standard quantity of direct materials for actual production c. Actual pounds of Actual Quantity Direct Materials Used (AQU)for actual production

How is the fixed overhead budget variance calculated?

The Chilton Corporation specializes in manufacturing one type of desk lamp. Chilton allocates variable manufacturing overhead costs on the basis of machine hours. Chilton budgeted 0.3 machine hours per lamp and allocates overhead at a rate of $1.90 per machine hour. Last year Chilton manufactured 19,000 lamps, used 7,600 machine hours and incurred actual overhead costs of $12,920. What was Chilton's variable manufacturing overhead efficiency variance last year?

Hushovd Iron Works has collected the following data for its Thunderbolt line of products: What is the direct material price variance?

Baskets Inc. gathered the following actual results for the current month: Budgeted production and standard costs were: What is the direct materials quantity variance?

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 purchase and usage of direct materials including the related variances.

Piper Corporation, which manufactures dog toys, is developing direct labor standards. The basic direct labor rate is $16.79 per hour. Payroll taxes are 15% of the basic direct labor rate, while fringe benefits such as vacation and health care insurance, are $6.41 per hour. What is the standard rate per direct labor hour?

If the Standard Quantity Allowed (SQA)for direct labor is less than the Actual Quantity (AQ)used, the efficiency variance is favorable.

The Armstrong Corporation developed a flexible budget for its production process. Armstrong budgeted to use 10,000 pounds of direct material with a standard cost of $13 per pound to produce 10,000 units of finished product. Armstrong actually purchased 19,000 pounds and used 12,000 pounds of direct material with a cost of $29 per pound to produce 10,000 units of finished product. Given these results, what is Armstrong's direct material price variance?

A quantity (efficiency)variance for production inputs (materials and labor)is the difference between the Actual Quantity (AQ)of input used and the standard quantity of input, multiplied by the standard price per unit of input.

Nexus Industries uses a standard costing system to apply manufacturing costs to its production process. In May, Nexus anticipated producing 2700 units with fixed manufacturing overhead costs allocated at $8.40 per direct labor hour with a standard of 2.5 direct labor hours per unit. In May, actual production was 3400 units and actual fixed manufacturing overhead costs were $23,000. What was Nexus' fixed manufacturing overhead volume variance in May?

Michael Corporation manufactures railroad cars, which is its only product. The standards for railroad cars are as follows: During the month of March, the company produced 1300 railroad cars. Related production data for the month follows: What is the direct labor efficiency variance for the month?

Which of the following situations may lead to a favorable direct materials price variance?

Which term below is best paired with "a summarized budget that can easily be computed for several volume levels"?

At lean companies, employees tend to be multi-skilled and cross-trained to perform a number of duties. These workers are held in high-esteem by management and are considered to be part of a team effort, rather than a labor force to be controlled. Consequently, this

The ________ department may be responsible to incur a "direct labor efficiency variance."

The managerial accountant at Aquatics Pools and Spas assess a fixed overhead budget variance of $3700 U in the month of April. The standard hours in April were 2800 hours and the standard rate was projected at $10 per machine-hour. There were unforeseen complications that involved raw materials and the standard rate projected per machine-hour was inaccurate. What was the standard rate per machine-hour if the standard fixed overhead cost of production is $43,700? What is the budgeted fixed overhead amount if the actual fixed overhead is $44,900?