Bear Company uses a standard costing system. The following information pertains to direct labour costs for the month of March: \[\begin{array} { l l } \text { Standard direct labour rate per hour } & \$ 15.00 \\ \text { Actual direct labour rate per hour } & \$ 13.50 \\ \text { Labour rate vari ance } & \$ 18,000 \text { favourable } \\ \text { Actual output } & 1,000 \text { units } \\ \text { Standard hours allowed for actual production } & 10,000 \text { hours } \end{array}\] -Refer to the Figure.How many actual labour hours were worked during March for Bear Company?

A) 1,200 hours B) 2,000 hours C) 10,000 hours D) 12,000 hours A) 1,200 hours B) 2,000 hours C) 10,000 hours D) 12,000 hours

Exam 10: Standard Costing: a Managerial Control Tool

Bear Company uses a standard costing system. The following information pertains to direct labour costs for the month of March: Standard direct labour rate per hour \ 15.00 Actual direct labour rate per hour \ 13.50 Labour rate vari ance \ 18,000 favourable Actual output 1,000 units Standard hours allowed for actual production 10,000 hours -Refer to the Figure.How many actual labour hours were worked during March for Bear Company?

(Multiple Choice)

4.8/5

(44)

Question 161

The benefits of operational control,however,may not extend to the manufacturing environments that are emphasizing continuous improvement and just-in-time (JIT)purchasing and manufacturing.

(True/False)

4.9/5

(30)

Question 162

Allan Company manufactures overalls. During the year, it manufactured 125,000 overalls, using 2.9 hours of direct labour at a rate of $6.25 per hour. The materials and labour standards for manufacturing the overalls are as follows: Allan required 600,000 m at $1.95 per metre to make the 125,000 overalls. $\begin{array}{lll}\text {Direct materials ( 5 \mathrm{~m} of denim $ (012 $ per metre) }&\$10\\\text { Direct labour (3 hours $ @ \$ 6 $ per hour)}&18\\\end{array}$ -Refer to the Figure.What is Allan's materials price variance?

(Multiple Choice)

4.7/5

(31)

Question 163

One reason for adopting a standard cost system is to make product costing easier.

(True/False)

4.9/5

(39)

Question 164

Islander Corporation manufactures a product with the following standard costs: Standards are based on normal monthly production involving 2,000 direct labour hours (500 units of output). The following information pertains to the month of April: Required:

(Essay)

4.9/5

(39)

Question 165

Ponte Company produced 2,500 widgets during December using 4,000 units of materials at a cost of $5.00 each.It also used 5,000 direct labour hours at a rate of $7.00 per hour.Its direct materials standard is 2 units per widget.Its direct labour standard is 2.5 hours per widget. Its materials price variance was a favourable $8,000,and its labour rate variance was an unfavourable $1,000. A. Calculate the standard price per unit. B. Calculate the standard labour rate. C. Determine the materials usage variance and whether it is favourable or unfavourable. D. Determine the labour efficiency variance and whether it is favourable or unfavourable.

(Essay)

4.9/5

(40)

Question 166

Managers develop quantity standards when they decide what amount of input should be used per unit of output.

(True/False)

4.9/5

(30)

Question 167

Which of the following is NOT a characteristic of kaizen standards?

(Multiple Choice)

4.8/5

(40)

Question 168

Match each item with the correct statement below. -A tool used to provide the production data needed to calculate the standard unit cost.

(Multiple Choice)

4.7/5

(31)

Question 169

Favourable variances are credits,and unfavourable variances are debits.

(True/False)

4.8/5

(33)

Question 170

The sum of the labour rate and labour efficiency variances will not add up to the total labour variance.

(True/False)

4.9/5

(37)

Question 171

A kaizen standard reflects the realized improvements for the past periods and a search for more improvements for the future.

(True/False)

4.9/5

(36)

Question 172

Which of the following is NOT characteristic of variance investigation?

(Multiple Choice)

4.8/5

(48)

Question 173

Showing 161 - 173 of 173

The benefits of operational control,however,may not extend to the manufacturing environments that are emphasizing continuous improvement and just-in-time (JIT)purchasing and manufacturing.

One reason for adopting a standard cost system is to make product costing easier.

Islander Corporation manufactures a product with the following standard costs: Standards are based on normal monthly production involving 2,000 direct labour hours (500 units of output). The following information pertains to the month of April: Required:

Managers develop quantity standards when they decide what amount of input should be used per unit of output.

Which of the following is NOT a characteristic of kaizen standards?

Match each item with the correct statement below. -A tool used to provide the production data needed to calculate the standard unit cost.

Favourable variances are credits,and unfavourable variances are debits.

The sum of the labour rate and labour efficiency variances will not add up to the total labour variance.

A kaizen standard reflects the realized improvements for the past periods and a search for more improvements for the future.

Which of the following is NOT characteristic of variance investigation?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Costvolumeprofit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Budgeting, production, cash, and Master Budget

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters