Exam 10: Standard Costs and Variances

Wall Corporation, which produces commercial safes, has provided the following data: Supplies cost is an element of variable manufacturing overhead. The variable overhead rate variance for supplies is closest to:

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 efficiency variance for the month?

Blaster, Inc. , manufactures portable radios.Each radio requires 3 units of Part XBEZ52, which has a standard cost of $1.45 per unit.During May, the company purchased 12, 000 units of the part for a total of $18, 000.Also during May, the company manufactured 3, 000 radios, using 10, 000 units of part XBEZ52.The direct materials purchases variance is computed when the materials are purchased. During May, the materials price variance for part XBEZ52 was:

A quantity of a particular raw material was purchased for $43, 250.The standard cost of the material was $2.00 per kilogram and there was an unfavorable materials price variance of $3, 250.How many kilograms were purchased?

Ortman Corporation makes a product with the following standard costs: The company reported the following results concerning this product in May. 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 rate 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: Required: a.What is the labor rate variance for the month? b.What is the labor efficiency variance for the month?

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 rate variance for April is:

Midgley Corporation makes a product whose direct labor standards are 0.8 hours per unit and $22.00 per hour.In April the company produced 6, 900 units using 5, 250 direct labor-hours.The actual direct labor cost was $113, 925. The labor rate variance for April is:

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 quantity variance for June?

Smyer Corporation makes a product with the following standard costs: The company reported the following results concerning this product in July. 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 labor rate variance. e.Compute the variable overhead efficiency variance. f.Compute the variable overhead rate variance.

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 rate variance for December 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: The direct materials purchases variance is computed when the materials are purchased. Required: a.What is the materials price variance for the month? b.What is the materials quantity variance for the month?

Biery Corporation makes a product with the following standard costs: The company produced 4, 100 units in April using 5, 380 liters of direct material and 2, 610 direct labor-hours.During the month, the company purchased 6, 000 liters of the direct material at $5.80 per liter.The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 per hour. 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:

Biery Corporation makes a product with the following standard costs: The company produced 4, 100 units in April using 5, 380 liters of direct material and 2, 610 direct labor-hours.During the month, the company purchased 6, 000 liters of the direct material at $5.80 per liter.The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 per hour. 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 rate variance for April is:

The Fischer Corporation uses a standard costing system.The following data have been assembled for December: The standard hours allowed for December's production is:

Canevari Corporation makes a product that uses a material with the following standards: The company budgeted for production of 1, 300 units in April, but actual production was 1, 200 units.The company used 3, 750 kilos of direct material to produce this output.The company purchased 4, 100 kilos of the direct material at a total cost of $8, 610.The direct materials purchases variance is computed when the materials are purchased. The materials price variance for April is:

Biery Corporation makes a product with the following standard costs: The company produced 4, 100 units in April using 5, 380 liters of direct material and 2, 610 direct labor-hours.During the month, the company purchased 6, 000 liters of the direct material at $5.80 per liter.The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 per hour. 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 materials price variance for April is:

Imrie Corporation makes a product that uses a material with the quantity standard of 9.5 grams per unit of output and the price standard of $5.00 per gram.In January the company produced 2, 900 units using 26, 940 grams of the direct material.During the month the company purchased 28, 900 grams of the direct material at $4.90 per gram.The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for January 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 materials price variance for June is:

Galla Corporation makes a product with the following standard costs: The company budgeted for production of 2, 400 units in June, but actual production was 2, 500 units.The company used 19, 850 pounds of direct material and 980 direct labor-hours to produce this output.The company purchased 21, 700 pounds of the direct material at $6.70 per pound.The actual direct labor rate was $19.20 per hour and the actual variable overhead rate was $1.80 per hour. 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 June is: