Exam 22: Evaluating Variances From Standard Costs

If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual was 800 units at $12,the direct materials quantity variance was $1,000 unfavorable.

Standards are performance goals used to evaluate and control operations.

The following data relate to direct labor costs for the current period: What is the direct labor rate variance?

The following data is given for the Bahia Company: ​​ Overhead is applied on standard labor hours. The variable factory overhead controllable variance is

The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are ​ The amount of direct materials price variance is

What is the amount of the fixed factory overhead volume variance?

Calculate the direct labor time variance.

What is the direct labor rate variance?

The fact that workers are unable to meet a properly determined direct labor standard is sufficient cause to change the standard.

Standard cost variances are usually not reported in reports to stockholders.

Financial reporting systems that are guided by the principle of exceptions concept focus attention on variances from standard costs.

The direct labor rate variance is

Morocco Desk Co.purchases 6,000 feet of lumber at $6.00 per foot.The standard price for direct materials is $5.00.The entry to record the purchase and unfavorable direct materials price variance is ​

Myers Corporation has the following data related to direct materials costs for November: actual costs for 5,000 pounds of material at $​4.50; and standard costs for 4,800 pounds of material at $5.10 per pound. ​ What is the direct materials quantity variance?

The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows: The direct labor rate variance is

If the actual direct labor hours spent producing a commodity differs from the standard hours,the variance is a

The following data relate to direct labor costs for the current period: ​ What is the direct labor rate variance?

The most effective means of presenting standard factory overhead cost variance data is through a factory overhead cost variance report.

If the standard to produce a given amount of product is 600 direct labor hours at $17 and the actual was 500 hours at $15,the time variance was $1,500 unfavorable.

If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual was 800 units at $12,the direct materials price variance was $800 favorable.