Exam 12: Standard Costs and Variances

Stelluti Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product H67F specifies 7.8 direct labor-hours per unit of H67F. The standard variable overhead rate is $6.50 per direct labor-hour. During the most recent month, 400 units of product H67F were made and 2,900 direct labor-hours were worked. The actual variable overhead incurred was $20,155. Required: a. What was the variable overhead rate variance for the month? b. What was the variable overhead efficiency variance for the month?

The Wright Company has a standard costing system. The following data are available for September: The actual price per pound of direct materials purchased in September is:

The variable overhead rate variance for supplies is closest to:

The standards for product U31 call for 7.1 liters of a raw material that costs $12.10 per liter. Last month, 1,900 liters of the raw material were purchased for $23,180. The actual output of the month was 200 units of product U31. A total of 1,200 liters of the raw material were used to produce this output. Required: a. What is the materials price variance for the month? b. What is the materials quantity variance for the month?

What is the materials price variance for the month?

An unfavorable direct labor efficiency variance could be caused by:

The labor rate variance for May is:

The labor efficiency variance for October is:

The materials quantity variance for November is:

Imme Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following variable overhead standards for product I81Z: The following data pertain to the most recent month's operations during which 1,360 units of product I81Z were made: Required: a. What was the variable overhead rate variance for the month? b. What was the variable overhead efficiency variance for the month?

The following standards for variable overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: Required: a. What is the variable overhead rate variance for the month? b. What is the variable overhead efficiency variance for the month?

What is the variable overhead efficiency variance for the month?

The following data for November have been provided by Rickenbaker Corporation, a producer of precision drills for oil exploration: Required: Compute the variable overhead rate variances for indirect labor and for power for November. Indicate whether each of the variances is favorable (F) or unfavorable (U). Show your work!

The materials price variance is computed by multiplying the difference between the actual price and the standard price by the actual quantity of materials used in production.

Acri Corporation produces large commercial doors for warehouses and other facilities. In the most recent month, the company budgeted production of 6,900 doors. Actual production was 7,300 doors. According to standards, each door requires 5.6 machine-hours. The actual machine-hours for the month were 40,360 machine-hours. The standard supplies cost, and element of variable manufacturing overhead, is $4.20 per machine-hour. The actual supplies cost for the month was $168,251. The variable overhead efficiency variance for supplies cost is:

The materials price variance for September was:

The materials quantity variance for May is:

The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the labor rate variance for the month?

The variable overhead rate variance for November is:

The materials quantity variance for April is: