Exam 6: Performance Evaluation: Variance Analysis

Academy Awards makes plaques and trophies.Last year the company's direct labor payroll totaled $140,000 for 17,300 direct labor hours.The standard wage rate is $7.75 per direct labor hour. Required: Calculate Academy Awards’ direct labor rate variance for the period.

Which of the following is not a factor that could influence worker productivity?

Jasmine Manufacturing produces the glass vases used by florists.Each vase requires 15 minutes of direct labor time for which glass blowers are paid $30 per hour.During November,Jasmine produced 10,000 glass vases which required 2,550 hours of direct labor.Jasmine paid wages to the glass blowers of $74,500 during November.What is Jasmine's direct labor rate variance for November?

Johnston Manufacturing Company purchased 14,000 switches to make 6,000 units. The standard allows for 2 switches per unit. The company actually used 14,500 to produce the 6,000 units. Johnson budgeted $0.75 per switch, but had to pay $0.80 per switch. What is Johnston’s direct materials quantity variance for the period?

Morgan's,Inc.has provided you with the following financial information:

Assembly line workers at Thompson Manufacturing worked a total of 12,000 direct labor hours to produce 36,000 units. The standard for producing one unit is 15 minutes at a wage rate of $10.70. If the actual wage rate was $10.50 per direct labor hour, Thompson’s direct labor rate variance is

The two components of the direct labor flexible budget variance are the

Nantucket, Inc. uses a standard cost system. Workers were paid a total of $48,000 during the month of December. The company’s standard wage rate was $10 per hour, and the direct labor rate variance for the month was $1,200 unfavorable. Required: How many hours were worked during December?

Which of the following is not a reason why actual prices might differ from standard prices,resulting in a direct materials price variance?

An unfavorable variance is a variance that

The algebraic equation for the direct materials quantity variance is

Jasmine Manufacturing produces the glass vases used by florists.Each vase requires 15 minutes of direct labor time for which glass blowers are paid $30 per hour.During November,Jasmine produced 10,000 glass vases which required 2,550 hours of direct labor.Jasmine paid wages to the glass blowers of $74,500 during November.What is Jasmine's direct labor efficiency variance for November?

If a company incurs a lot of different variable overhead costs and the activity base is only slightly related to their consumption,which of the following statements is true?

Nantucket, Inc. uses a standard cost system with the following labor standards for one unit of product: standard hours 1/5 and standard wage rate $10. During December, Nantucket incurred 3,500 hours of direct labor and paid $34,000 in wages in production of 18,000 units. Required: Calculate the direct labor rate and efficiency variances and indicate whether the variances are favorable or unfavorable.

Morgan's,Inc.has provided you with the following financial information:

An unfavorable variance is a variance that decreases operating income relative to the budgeted amount.

New Rock,Inc.sells video games it has purchased from a local distributor.The following static budget is based on sales of 8,000 games.However,New Rock only sold 7,800 games during the year.Fixed costs are 30% of total operating expenses

The difference between actual sales volume and budgeted sales volume has nothing to do with the price and quantity variance.

Kevin Jarvis is the controller of Bitterroot Industries.Kevin prepared the following budgeted income statement at various levels of sales.After careful review of the budgeted income statements,and after discussions with the sales and production managers,the CEO determines that the best alternative is to base the budget on a sales volume of 30,000 units. Actual results for the year were 28,000 units, reflected in the following income statement: What is the sales volume variance for direct material?

The algebraic equation for the direct labor rate variance is