Exam 23: Performance Evaluation Using 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 $2,200 unfavorable.

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

Standards are set for only direct labor and direct materials.

The unfavorable volume variance may be due to all of the following factors except:

Periodic comparisons between planned objectives and actual performance are reported in:

If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is termed a:

The following data relate to direct materials costs for November: What is the direct materials quantity variance?

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

Calculate the total factory overhead cost variance using the above information:

The principle of exceptions allows managers to

The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: The amount of the factory overhead controllable variance is:

The following data is given for the Zoyza Company: Overhead is applied on standard labor hours. The factory overhead volume variance is:

Rosser Company produces a container that requires 4 yds. of material per unit. The standard price of one yard of material is $4.50. During the month, 9,500 chairs were manufactured, using 37,300 yards. Required: Journalize the entry to record the standard direct materials used in production.

The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows: What is the amount of the factory overhead controllable variance?

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

The difference between the standard cost of a product and its actual cost is called a variance.

Standards are designed to evaluate price and quantity variances separately.

The standard costs and actual costs for direct materials, direct labor, and factory overhead for the manufacture of 2,500 units of product are as follows: The amount of the direct labor time variance is:

Which of the following is not a reason for a direct materials quantity variance?

Calculate the Total Direct Materials cost variance using the above information: