Exam 8: Standard Cost Accounting--Materials, labor, and Factory Overhead

The Davis Corporation budgeted factory overhead at $250,000 for the period for the Assembly Department based on a budgeted volume of 100,000 direct labor hours.At the end of the period,the factory overhead control account for the Assembly Department had a balance of $252,000.The actual (and allowed)direct labor hours were 103,000. ​ What was the over- or underapplied factory overhead for the period?

All of the following are features of a standard cost system except:

The following information pertains to the Braun Company for March: Using the four-variance method of factory overhead variance analysis,what is the variable overhead spending variance?

The materials quantity variance,in a standard cost system,is the:

James Corporation uses a standard cost system and recognizes the materials purchase price variance at the time materials are purchased.Information for raw materials for the month of December follows: What is the entry to record material usage?

The data below relate to the month of April for Monroe,Inc. ,which uses a standard cost system and a two-variance analysis of factory overhead: What was Monroe's flexible-budget variance for April?

The purpose of standard costing is to:

Which of the following correctly demonstrates the comparison of the four-variance method of factory overhead analysis to the two-variance method of factory overhead analysis?

What is the normal year-end treatment of immaterial variances recognized in a cost accounting system utilizing standards?

Which of the following is not likely to cause a labor efficiency variance?

The direct labor costs for Boundary Company follow: What was Boundary's standard direct labor rate?

The following information is available from the Arugula Company: Assuming that Arugula uses a three-variance analysis of overhead variances,what is the production-volume variance?

The following information pertains to the Braun Company for March: Using the four-variance method of factory overhead variance analysis,what is the fixed overhead production-volume variance?

Palek Company has adopted the following standards: Palek's January budget was based on normal volume of 40,000 standard labor hours.During January,Palek produced 7,900 units with records indicating the following data: Assuming Palek uses the four-variance method of analyzing factory overhead,compute the following variances for the month of January and indicate whether each is favorable or unfavorable: a.Variable overhead spending variance b.Variable overhead efficiency variance c.Fixed overhead spending variance d.Fixed overhead production-volume variance

McLelland Fabricators has two departments,Machining and Assembly.When good are completed in the Machining Department,they are transferred to the Assembly Department,and when completely assembled,they are transferred to the finished goods warehouse.There was no beginning or ending inventory in either department in February. Other information for February is as follows: Prepare the journal entries for: 1)The issuance of direct materials to production and the recording of the materials variances. 2)The use of direct labor in production and the recording of the labor variances. 3)The entries to record actual and applied factory overhead (use "Various Credits" if necessary. ) 4)The entries to transfer the production cost from the Machining Department to the Assembly Department and from the Assembly Department to finished goods.

PHI Company began its operations on January 1 and produces a single product that sells for $35.00 per unit.5,000 units were produced and 4,000 units were sold during the year. Standard costs per unit follow: What is entry to record the finished goods?

The fixed overhead application rate is a function of a predetermined "normal" activity level.If standard hours allowed for good output equal this "normal" activity level for a given period,the production-volume variance will be:

Under normal circumstances,a purchasing manager who buys poor quality materials because they were cheaper could potentially be responsible for causing all of the following variances except a(n):

The following information is available from the Arugula Company: Assuming that Arugula uses a three-variance analysis of overhead variances,what is the spending variance?

If a company follows a practice of isolating variances at the earliest point in time,what would be the appropriate time to isolate and recognize a direct material price variance?