Exam 11: Standard Costing and Variance Analysis

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 usage 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 variable overhead spending (expenditure) variance would be

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 variable overhead efficiency variance would be

A favorable materials usage variance may be caused by

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 variable standard cost per unit would be

An unfavorable materials price variance with a favorable materials usage variance would most likely be the result of

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 standard fixed overhead rate is

Franklin Company expected sales were 2,000 units at £100 per unit. During 2004, it had actual sales of 1,800 units at £110 per unit. Budgeted variable costs were £60 per unit. What is Franklin's sales price variance?

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 labour rate variance would be

Using more highly skilled direct labourers might affect which of the following variances?

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 variable overhead spending (expenditure)variance would be

The labour rate variance is calculated as

Which department is usually held responsible for materials quantity variance?

Wade Company has developed the following standards for one of its products: The company records materials price variances at the time of purchase. Required:

Standard costs include the quantity and price of inputs for each unit of product. These inputs include

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

Variances indicate

During October, 16,000 direct labour hours were worked at a standard cost of £6 per hour. If the labour rate variance for October was £4,000 unfavorable, the actual cost per labour hour must be

Figure 3 Tuvok Ltd. has developed the following standards for one of its products: -Refer to Figure 3. Tuvok's material price variance is

Figure 3 Tuvok Ltd. has developed the following standards for one of its products: -Refer to Figure 3. Tuvok's actual cost per pound of materials must have been (round to the nearest cent)