Exam 10: Standard Costs and Variances

Dreary Credit Agency uses a standard cost system for the processing of its credit applications.The labor standard at Dreary is 10 applications per 8 hour day at a standard cost of $15 per hour. During the last pay period, Dreary's credit agents worked 1, 920 hours and processed 2, 500 applications.The total labor cost for the agents during this period was $29, 184.What was Dreary's labor efficiency variance for this last pay period?

The Collins Corporation uses standard costing and has established the following direct material and direct labor standards for each unit of the single product it makes: • Direct materials: 4 gallons at $8 per gallon • Direct labor: 1 hour at $16 per hour During July, the company made 6, 000 units of product and incurred the following costs: • Direct materials purchased: 26, 800 gallons at $8.20 per gallon • Direct materials used: 25, 200 gallons • Direct labor used: 5, 600 hours at $15.30 per hour The direct materials purchases variance is computed when the materials are purchased. The materials price variance for July was:

The Swenson Corporation has a standard costing system.The following data are available for June: The actual price per pound of direct materials purchased in June is:

The standard cost card for a product indicates that one unit of the product requires 8 kilograms of a raw material at $0.80 per kilogram.The production of the product in April was 870 units, but production had been budgeted for 850 units.During April, 8, 200 kilograms of the raw material were purchased for $6, 888 and 7, 150 kilograms of the raw material were used in production.The material variances for April were:

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

The variance that is usually most useful in assessing the performance of the purchasing department manager is:

The standard cost card for one unit of a certain finished product shows the following: If the total standard variable cost for one unit of finished product is $85, then the standard price per pound for direct materials is:

Epley Corporation makes a product with the following standard costs: In July the company produced 3, 300 units using 12, 240 pounds of the direct material and 2, 760 direct labor-hours.During the month, the company purchased 13, 000 pounds of the direct material at a cost of $35, 100.The actual direct labor cost was $51, 612 and the actual variable overhead cost was $20, 148. The company applies variable overhead on the basis of direct labor-hours.The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for July is:

Berends Corporation makes a product with the following standard costs: The company reported the following results concerning this product in April. The company applies variable overhead on the basis of direct labor-hours.The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for April is:

Beakins Corporation produces a single product.The standard cost card for the product follows: During a recent period the company produced 1, 200 units of product.Various costs associated with the production of these units are given below: The company records all variances at the earliest possible point in time.Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The variable overhead rate variance for the period is:

Berends Corporation makes a product with the following standard costs: The company reported the following results concerning this product in April. The company applies variable overhead on the basis of direct labor-hours.The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for April is:

Gilder Corporation makes a product with the following standard costs: The company reported the following results concerning this product in June. The company applies variable overhead on the basis of direct labor-hours.The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for June is:

The standards for product F88W specify 3.4 direct labor-hours per unit at $13.00 per direct labor-hour.Last month 800 units of product F88W were produced using 2, 500 direct labor-hours at a total direct labor wage cost of $30, 500. Required: a.What was the labor rate variance for the month? b.What was the labor efficiency variance for the month?

Desue Corporation makes a product with the following standards for labor and variable overhead: The company budgeted for production of 6, 500 units in December, but actual production was 6, 300 units.The company used 610 direct labor-hours to produce this output.The actual variable overhead rate was $6.40 per hour.The company applies variable overhead on the basis of direct labor-hours. The variable overhead efficiency variance for December is:

Suski Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs).The company has provided the following data for the most recent month: What was the variable overhead rate variance for the month?

Shawl Corporation's variable overhead is applied on the basis of direct labor-hours.The standard cost card for product F02E specifies 5.5 direct labor-hours per unit of F02E.The standard variable overhead rate is $6.80 per direct labor-hour.During the most recent month, 1, 560 units of product F02E were made and 8, 700 direct labor-hours were worked. The actual variable overhead incurred was $52, 635. 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 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?

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead.Variable manufacturing overhead standards are based on machine-hours. The following data pertain to operations for the last month: What is the variable overhead efficiency variance for the month?

Stench Foods Corporation uses a standard cost system to collect costs related to the production of its garlic flavored yogurt.The garlic (materials)standards for each container of yogurt produced are 0.8 ounces of crushed garlic at a standard cost of $2.30 per ounce. During the month of June, Stench purchased 75, 000 ounces of crushed garlic at a total cost of $171, 000.Stench used 64, 000 of these ounces to produce 71, 500 containers of yogurt. The direct materials purchases variance is computed when the materials are purchased. What is Stench's materials price variance for June?

Oddo Corporation makes a product with the following standard costs: The company reported the following results concerning this product in December. The company applies variable overhead on the basis of direct labor-hours.The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for December is: