Exam 12: Standard Costs and Variances

Fastic Corporation makes a product with the following standard costs: The company reported the following results concerning this product in August. The materials price variance is recognized when materials are purchased. Variable overhead is applied on the basis of direct labor-hours. Required: a. Compute the materials quantity variance. b. Compute the materials price variance. c. Compute the labor efficiency variance. d. Compute the direct labor rate variance. e. Compute the variable overhead efficiency variance. f. Compute the variable overhead rate variance.

Tower Company planned to produce 3,000 units of its single product, Titactium, during November. The standards for one unit of Titactium specify six pounds of materials at $0.30 per pound. Actual production in November was 3,100 units of Titactium. There was an unfavorable materials price variance of $380 and a favorable materials quantity variance of $120. Based on these variances, one could conclude that:

The Reedy Company uses a standard costing system. The following data are available for November: The actual direct labor rate for November is:

The variable overhead rate variance for May is:

The direct materials price variance for May is:

The variable overhead efficiency variance for August is:

Lafountaine Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company's cost formula for variable manufacturing overhead is $4.70 per MH. During the month, the actual total variable manufacturing overhead was $20,210 and the actual level of activity for the period was 4,700 MHs. What was the variable overhead rate variance for the month?

The labor efficiency variance for January is:

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: Actual materials purchased 6,600 Pounds Actual cost of materials purchased \ 91,740 Actual materials used in production. 5,900 Pounds Actual output. 1,000 Units What is the materials quantity variance for the month?

The variable overhead efficiency variance for supplies is closest to:

The materials quantity variance for July is:

The standard material allowed to produce one unit of Roff was:

The variable overhead efficiency variance for June is:

What is the labor efficiency variance for the month?

The labor efficiency variance for August is:

The following data have been provided by Spraglin Corporation, a company that produces forklift trucks: Supplies cost is an element of variable manufacturing overhead. The variable overhead efficiency variance for supplies cost is:

What is the variable overhead efficiency variance for the month?

Thompson Company uses a standard cost system for its single product. The following data are available: Actual experience for the current year: Standards per unit of product: Required: Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase: a. Direct materials price variance. b. Direct materials quantity variance. c. Direct labor rate variance. d. Direct labor efficiency variance. e. Variable overhead rate variance. f. Variable overhead efficiency variance.

Kornfeld Corporation produces metal telephone poles. In the most recent month, the company budgeted production of 2,800 poles. Actual production was 3,200 poles. According to standards, each pole requires 2.2 machine-hours. The actual machine-hours for the month were 6,890 machine-hours. The standard variable manufacturing overhead rate is $9.20 per machine-hour. The actual variable manufacturing cost for the month was $67,020. The variable overhead efficiency variance is: