Exam 10: Standard Costs and Overhead Analysis

Sucher Company uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of machine hours.The company's condensed flexible budget for manufacturing overhead is given below: The denominator level of activity is 30,000 machine hours.Standards call for 2.5 machine hours per unit of output.Actual activity and manufacturing overhead costs for the year are given below: Required: a)What are the standard hours allowed for the output? b)What was the variable overhead spending variance? c)What was the variable overhead efficiency variance? d)What was the fixed overhead budget variance? e)What was the fixed overhead volume variance? f)(Appendix 10B)Prepare a journal entry to record the variable overhead costs incurred and applied,including the results of the variance analysis. g)(Appendix 10B)Prepare a journal entry to record the fixed overhead costs incurred and applied,including the results of the variance analysis.

The fixed overhead budget variance is NOT controllable by managers because fixed costs are NOT controllable.

What does a favourable labour rate variance indicate?

Mauve Company uses a standard cost system that applies manufacturing overhead to units of product on the basis of direct labour hours (DLHs).The following data pertain to last month: What was the fixed overhead budget variance?

The predetermined overhead rate (variable and fixed)is $7.50 per machine hour,and the denominator activity level is 135,000 machine hours.If the variable portion of the predetermined overhead rate is $3.00 per machine hour,what is the budgeted fixed factory overhead for the year?

Information on Kennedy Company's direct material costs follows: What was the actual purchase price per unit,rounded to the nearest cent?

Which of the following is the most probable reason a company would experience an unfavourable labour rate variance and a favourable labour efficiency variance?

What was the labour efficiency variance?

For the month of April,Thorp Co.'s records disclosed the following data relating to direct labour: For the month of April,actual direct labour hours amounted to 2,000.In April,what was Thorp's standard direct labour rate per hour?

What was the materials quantity variance?

What was the labour efficiency variance for January? Do not round intermediate calculations.

What was the variable overhead efficiency variance for the month?

(Appendix 10B)The Lahn Company produces and sells a single product.Standards have been established for the product as follows: Actual cost and usage figures for the past month follow: Required: Prepare journal entries to record: a)The purchase of raw materials. b)The usage of raw materials in production. c)The incurrence of direct labour cost.

The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What was the variable overhead spending variance for the month?

What was the variable overhead spending variance for May?

Tower Company planned to produce 3,000 units of its single product,Titactium,during November.The standards for one unit of Titactium specify six kilograms of materials at $0.30 per kilogram.Actual production in November was 3,100 units of Titactium.There was a favourable materials price variance of $380 and an unfavourable materials quantity variance of $120.Based on these variances,what could one assume?

What was the total predetermined overhead rate,rounded to the nearest cent?

Information on Fleming Company's direct material costs follows: What was the company's direct material price variance?

What was the variable overhead spending variance for the month?

Tracton Corporation uses a standard costing system in which manufacturing overhead costs are applied to products on the basis of machine time. Required: a)Several numbers and labels have been omitted from the analysis of fixed overhead below.Supply the missing numbers and labels.