Exam 10: Standard Costs and Variances

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 materials quantity variance for July 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 rate variance for June is:

The following data have been provided by Petri Corporation: Indirect labor and power are both elements of variable manufacturing overhead. The variable overhead rate variance for indirect labor is closest to:

Eliezrie Corporation makes a product with the following standard costs: In January the company's budgeted production was 7, 400 units but the actual production was 7, 500 units.The company used 45, 580 kilos of the direct material and 2, 030 direct labor-hours to produce this output.During the month, the company purchased 48, 500 kilos of the direct material at a cost of $53, 350.The actual direct labor cost was $18, 473 and the actual variable overhead cost was $7, 714. 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 January is:

Eliezrie Corporation makes a product with the following standard costs: In January the company's budgeted production was 7, 400 units but the actual production was 7, 500 units.The company used 45, 580 kilos of the direct material and 2, 030 direct labor-hours to produce this output.During the month, the company purchased 48, 500 kilos of the direct material at a cost of $53, 350.The actual direct labor cost was $18, 473 and the actual variable overhead cost was $7, 714. 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 January is:

Which of the following would produce a labor rate variance?

Machain Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The company's standard variable manufacturing overhead rate is $2.90 per machine-hour.The actual variable manufacturing overhead cost for the month was $15, 270.The original budget for the month was based on 5, 000 machine-hours.The company actually worked 5, 090 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 5, 200 machine-hours.What was the variable overhead efficiency variance for the month?

The following data have been provided by Mathews Corporation: Lubricants and supplies are both elements of variable manufacturing overhead. The variable overhead rate variance for supplies is closest to:

Pardoe, Inc. , manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours.The company uses a standard cost system and has established the following standards for one unit of product: During March, the following activity was recorded by the company: • The company produced 3, 000 units during the month. • A total of 8, 000 pounds of material were purchased at a cost of $23, 000. • There was no beginning inventory of materials on hand to start the month;at the end of the month, 2, 000 pounds of material remained in the warehouse. • During March, 1, 600 direct labor-hours were worked at a rate of $6.50 per hour. • Variable manufacturing overhead costs during March totaled $1, 800. The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for March is:

The following data have been provided by Petri Corporation: Indirect labor and power are both elements of variable manufacturing overhead. The variable overhead rate variance for power is closest to:

The standard cost card of a particular product specifies that it requires 4.5 direct labor-hours at $12.80 per direct labor-hour.During March, 2, 300 units of the product were produced and direct labor wages of $128, 300 were incurred.A total of 11, 700 direct labor-hours were worked.The direct labor variances for the month were:

Holiday Chemical Corporation uses a standard cost system to collect costs related to the production of its "bowling ball" fruitcakes.The direct labor standard for each fruitcake is 1.25 hours at a standard cost of $11.00 per hour.During the month of November, Holiday's fruitcake production used 9, 820 direct labor-hours at a total direct labor cost of $106, 547.This resulted in production of 8, 500 fruitcakes for November. What is Holiday's labor efficiency variance for November?

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 variable overhead rate variance for June is:

Graybeal Corporation makes a product with the following standard costs: The company reported the following results concerning this product in March. 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.

Eliezrie Corporation makes a product with the following standard costs: In January the company's budgeted production was 7, 400 units but the actual production was 7, 500 units.The company used 45, 580 kilos of the direct material and 2, 030 direct labor-hours to produce this output.During the month, the company purchased 48, 500 kilos of the direct material at a cost of $53, 350.The actual direct labor cost was $18, 473 and the actual variable overhead cost was $7, 714. 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 January is:

Eliezrie Corporation makes a product with the following standard costs: In January the company's budgeted production was 7, 400 units but the actual production was 7, 500 units.The company used 45, 580 kilos of the direct material and 2, 030 direct labor-hours to produce this output.During the month, the company purchased 48, 500 kilos of the direct material at a cost of $53, 350.The actual direct labor cost was $18, 473 and the actual variable overhead cost was $7, 714. 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 January is:

Melrose Corporation makes a product that uses a material with the following standards: The company budgeted for production of 5, 800 units in September, but actual production was 5, 900 units.The company used 50, 210 pounds of direct material to produce this output.The company purchased 55, 100 pounds of the direct material at $5.80 per pound. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for September is:

The Hanson Corporation employs a standard costing system.The following data are available for February: The actual direct labor rate for February is:

Zacher Corporation makes a product with the following standards for direct labor and variable overhead: In February the company's budgeted production was 6, 900 units, but the actual production was 7, 000 units.The company used 1, 980 direct labor-hours to produce this output.The actual variable overhead cost was $10, 296.The company applies variable overhead on the basis of direct labor-hours. The variable overhead efficiency variance for February 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 variable overhead rate variance for June is: