Exam 11: Standard Costing and Variance Analysis

Figure 1 Max Company has developed the following standards for one of its products: The following activities occurred during the month of October: The company records materials price variances at the time of purchase. -Refer to Figure 1. Max's materials usage variance would be

Which of the following is a disadvantage of adopting a standard costing system?

Figure 1 Max Company has developed the following standards for one of its products: The following activities occurred during the month of October: The company records materials price variances at the time of purchase. -Refer to Figure 1. Max's materials price variance would be

Figure 8 The following information was extracted from the accounting records of Noelle Company: Budgeted fixed overhead for the period is £420,000, and the budgeted fixed overhead rate is based on an expected capacity of 30,000 direct labour hours. The following information is available regarding the company's operations for the period: -Refer to Figure 8. Noelle's fixed overhead spending (expenditure) variance would be

A favorable materials price variance may be caused by

labour efficiency variances may be caused by

Figure 2 Rax Company has developed the following standards for one of its products: The following activities occurred during the month of October: The company records materials price variances at the time of purchase. -Refer to Figure 2. Rax's labour efficiency variance would be

Figure 4 Shannon Ltd.'s standard cost card contained the following information: Direct labour: 1.25 hours x £8.00 per hour = £10.00 Shannon planned to make 12,000 units. Shannon actually made 10,000 units using 13,000 hours. -Refer to Figure 4. Shannon's labour efficiency variance was

For better control of direct material prices, when should direct material price variance be recognized?

The Chair Division operates as a revenue centre and has the following relevant information for 19x7: The actual selling price was £1 less than the budgeted selling price. Required: a. Calculate the budgeted sales price. b. Calculate the actual sales price. c. Calculate actual unit sales.

Discuss the advantages and disadvantages of both ideal or currently attainable standards.

The labour efficiency variance is calculated as

Figure 5 Ebola Company has developed the following standards for one of its products: The following activities occurred during the month of October: The company records materials price variances at the time of purchase. -Refer to Figure 5. Ebola's materials price variance would be

The following standard costs were developed for one of the products of Larry Ltd.: The following information is available regarding the company's operations for the period: Budgeted fixed manufacturing overhead for the period is £960,000, and the standard fixed overhead rate is based on expected capacity of 80,000 direct labour hours. Required: a. Calculate the materials price variance. b. Calculate the materials usage variance. c. Calculate the direct labour rate variance. d. Calculate the direct labour efficiency variance. e. Calculate the variable manufacturing overhead spending (expenditure) variance. f. Calculate the variable manufacturing overhead efficiency variance. g. Calculate the fixed manufacturing overhead spending (expenditure) variance.

Which of the following is information that would be included in the standard cost card (sheet)?

The standard fixed overhead rate is calculated as

Figure 7 Orient Company has developed the following standards for one of its products: The following activities occurred during the month of November: The company records materials price variances at the time of purchase. -Refer to Figure 7. Orient's labour rate variance would be

During December, 6,000 pounds of raw materials were purchased at a cost of £16 per pound. If there was an unfavorable materials price variance of £6,000 for December, the standard cost per pound must be

The following standard costs were developed for one of Commodore Company's products: The following information is available regarding the company's operations for the period: Budgeted fixed overhead for the period is £280,000, and expected capacity for the period is 28,000 direct labour hours. Required: a. Calculate the standard fixed overhead rate. b. Complete the standard cost card for the product.

During October, 14,000 direct labour hours were worked at a standard cost of £40 per hour. If the labour rate variance for October was £70,000 favorable, the actual cost per labour hour must be