Exam 9: Standard Costing: a Functional-Based Control Approach

The variable overhead efficiency variance measures the change in variable overhead consumption due to efficient or inefficient use of the activity driver used to assign overhead costs to products.

During January, 7,175 direct labor hours were worked at a standard cost of $20 per hour. If the direct labor rate variance for January was $17,500 favorable, the actual cost per direct labor hour must be

Figure 9-3 Alumni Manufacturing Company has the following information pertaining to a normal monthly activity of 10,000 units: Standard factory overhead rates are based on a normal monthly volume of one standard direct hour per unit. Standard factory overhead rates per direct labor hour are: Refer to Figure 9-3. What is the variable overhead spending variance for Alumni?

Firecracker Company has developed the following standards for one of its products. The company records materials price variances at the time of purchase. The direct materials price variance is

Which of the following factors would cause an unfavorable material quantity variance?

Figure 9-4 San Francisco Corporation uses two materials in the production of its product. The materials, X and Y, have the following standards: During April, the following actual production information was provided: Refer to Figure 9-4. What is the materials mix variance?

A five-percent wage increase for all factory employees would affect which of the following variances?

Colina Production Company uses a standard costing system. The following information pertains to 2014. Direct labor hours is the driver used to assign overhead costs to products. The factory overhead rate is based on an activity level of 10,000 direct labor hours. Standard cost data for 5,000 units is as follows: What is the fixed overhead volume variance for Colina Production Company?

If a company produces fewer units than expected, there will be

The standard plus the allowable deviation is called the:

The San Jose Corporation uses two materials in the production of its product. The materials, G and H, have the following standards: During June, the following actual production information was provided: What is the materials mix variance?

Which of the following factors would cause an unfavorable labor rate variance?

Croissant Company's standard fixed overhead cost is $6 per direct labor hour based on budgeted fixed costs of $600,000. The standard allows 1 direct labor hour per unit. During 2014, Croissant produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor. What is the standard activity level on which Croissant based its fixed overhead rate?

The document that shows the amount and cost of direct materials, direct labor, and overhead to make a unit of output is called the standard __________ .

Artigas Enterprises uses two materials in the production of its product. The materials, L and M, have the following standards: During January, the following actual production information was provided: What is the materials mix variance?

Biscuit Company has developed the following standards for one of its products. Direct labor hours is the driver used to assign overhead costs to products. The company records materials price variances at the time of purchase. The direct labor efficiency variance is

Fixed manufacturing overhead was budgeted at $105,000, and 25,000 direct labor hours were budgeted. If the fixed overhead volume variance was $4,000 unfavorable and the fixed overhead spending variance was $1,500 favorable, fixed manufacturing overhead applied must be

Figure 9-1 Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows: Refer to Figure 9-1. What is the material price variance for Bender Corporation?

Mozambique Industries uses two different types of labor to manufacture its product. The types of labor, Cutting and Setup, have the following standards: During September, the following actual production information was provided: Required: Calculate the labor mix and yield variances.

The Awesome Systems Company, which uses direct labor hours to assign overhead costs to products, developed the following standard cost for one of their products: STANDARD COST CARD PER UNIT The following information is available regarding the company's operations for the period: Budgeted fixed manufacturing overhead for the period is $4,800,000, and expected capacity for the period is 60,000 direct labor hours. Required: