Exam 11: Standard Costs and Variances

Which of the following statements may be true if actual units produced exceed the budgeted units to be produced?

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 materials flexible budget variance for ammonia?

If production remains within the relevant range for the period, fixed costs are expected to remain fixed.

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

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

Which term below is best paired with "The difference between the actual overhead cost incurred and the flexible budget amount of overhead cost for actual number of output"?

If the purchasing manager purchased a greater quantity of raw materials than budgeted, but paid the Standard Price (SP), which variance may be affected?

Pyne Corporation's actual output for a period was assigned the standard labor cost of $32,500. If the company had an unfavorable direct labor rate variance of $1,750 and a favorable direct labor efficiency variance of $975, what was the total actual cost of direct labor incurred during the period?

The standard cost of direct labor per unit is calculated by

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.

Which of the following examples may lead directly to a favorable fixed overhead volume variance?

Newtowne Bakery bakes fresh pies that are very popular with the local residents. For July, Newtowne Bakery budgeted 600 direct labor hours to produce 400 pies. In July, Newtowne Bakery actually produced 520 pies and actually used 900 direct labor hours. The standard hours allowed during July may have been closest to

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 rate variance in October?

The direct materials price variance is calculated as

The unemployment rate is high in the city in which a company has a factory. The company finds that they are able to pay new employees a lower wage per hour than when the unemployment rate was lower a year ago. Which of the following variances may be directly impacted?

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 Standard Price (SP)for bleach?

Standards are often used as the basis for many components in the master budget.

Sandy's Sauces, which produces stir-fry sauces, is developing direct material standards. Each bottle of sauce requires 0.79 kilograms of base. The allowance for waste is 0.40 kilograms per bottle, while the allowance for rejects is 0.20 kilograms per bottle. What is the standard quantity of base per bottle?

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

If the Standard Quantity Allowed (SQA)for direct materials is greater than the Actual Quantity (AQ)used, the quantity variance is unfavorable.