Exam 22: Standard Costing and Variance Analysis

Candy Stores Inc.gives you the following information: The standard material cost is $7 per pound for a 15 pound bag of chocolate.The following is the actual cost and usage data: Using the above information provided for Candy Stores. -Compute the direct materials quantity variance for Candy Stores.

The direct materials standards for the main product of Duchess Company are 8 grams of direct materials per product at a cost of $3 per gram.During April,969 grams of direct materials were used to produce 120 products at a direct materials cost of $2,900.The direct materials quantity variance for April was

Which of the following is a drawback of using standard costing system?

Which of the following is indicated by a favorable fixed overhead volume variance of a manufacturing company?

The total overhead cost variance is equal to the difference between

The direct materials price standard is a carefully derived estimate of what a particular type of direct material will cost when purchased during the next accounting period.

"The difference between actual hours worked and standard hours allowed for the good units produced,multiplied by the standard labor rate" is a description of the

Underfoot Products uses standard costing.The following information about overhead was generated during May: -Using the above information provided for Underfoot Products,compute the variable overhead variance.

The total variable overhead variance is comprised of the

If the actual amount of direct materials used equals the standard amount of direct materials that should have been used,the difference between the standard cost and actual cost of direct materials is called the

The standard fixed overhead rate is usually based on the expected number of standard labor hours.

Golf Pro Inc.makes wood drivers for the professional golfer.Because of the clientele of users,only the finest materials can be used,and the quality of craftsmanship must be high.The following cost,quantity,and time standards have been set for 2014: Direct materials: 2 board-feet of wood @ $20 per board-foot and 2 feet of leather strip @ $5 per foot Direct labor: Cutting Department,0.6 hour per driver at $10 per hour;Shaping/Finishing Department,1.4 hours per driver at $15 per hour Overhead: variable,$5 per direct labor hour;fixed,$8 per direct labor hour The wood is added at the beginning of the cutting process and the leather strip at the beginning of the shaping/finishing process. Compute the standard cost per driver.

Underfoot Products uses standard costing.The following information about overhead was generated during May: -Using the above information provided for Underfoot Products,compute the fixed overhead volume variance.

A purpose of standard costing is to

Good Sleep Inc.manufactures soft pillows.Its records revealed the following data: -Using the above information provided for Good Sleep,the total overhead cost variance is

Standard costing can be used only with a process costing system.

Flexible budgets are also called static budgets.

Candy Stores Inc.gives you the following information: The standard material cost is $7 per pound for a 15 pound bag of chocolate.The following is the actual cost and usage data: Using the above information provided for Candy Stores. -Compute the direct materials variance for Candy Stores.

A variance is the difference between standard costs and actual costs.

The responsibility of a production manager is limited to direct materials used.