Exam 10: Standard Costs and Operating Performance Measures

Schoenfeld Corporation is developing direct labor standards.The basic direct labor wage rate is $10.00 per hour.Employment taxes are 9% of the basic wage rate.Fringe benefits are $3.71 per direct labor-hour.A particular product requires 0.88 direct labor-hours per unit.The allowance for breaks and personal needs is 0.06 direct labor-hours per unit.The allowance for cleanup,machine downtime,and rejects is 0.09 direct labor-hours per unit. -The standard rate per direct labor-hour should be:

The following data have been provided by Wordell Corporation: -The variable overhead rate variance for indirect labor is closest to:

The Clark Company makes a single product and uses standard costing.Some data concerning this product for the month of May follow: -The total standard cost for variable overhead for May was closest to:

Dolney Corporation has provided the following data for a recent period: -The variable overhead rate variance for lubricants is closest to:

The following data have been provided by Dicus Corporation: -The variable overhead rate variance for supplies is closest to:

The following data pertain to operations for the last month: What is the variable overhead efficiency variance for the month? A.$30,561 U <underLine>B.</underLine> $31,146 U C.$28,136 U D.$2,426 U SH = 1,100 * 6.3 = 6,930 Variable overhead efficiency variance = SR (AH - SH) = $18.65 (8,600 - 6,930) = $31,146 U -The following standards for variable overhead have been established for a company that makes only one product:

Pittmon Corporation is developing direct labor standards.The basic direct labor wage rate is $13.90 per hour.Employment taxes are 10% of the basic wage rate.Fringe benefits are $4.28 per hour.A particular product requires 0.90 direct labor-hours per unit.The allowance for breaks and personal needs is 0.07 direct labor-hours per unit.The allowance for cleanup,machine downtime,and rejects is 0.12 direct labor-hours per unit. Required: a.Determine the standard rate per direct labor-hour.Show your work! b.Determine the standard direct labor-hours per unit of product.Show your work! c.Determine the standard labor cost per unit of product to the nearest cent.Show your work!

Ideal standards can only be attained under the best circumstances and allow for no work interruptions.

The following data pertain to operations concerning the product for the last month: Required: a.What is the materials price variance for the month? b.What is the materials quantity variance for the month? Answer: a.Materials price variance = (AQ*AP) - (AQ *SP) = $139,400 - (8,500 * $15.60) = $6,800 U b.SQ = Standard quantity per unit * Actual output = 5.2 * 1,640 = 8,528 Materials quantity variance = SP(AQ - SQ) = $15.60(8,200 - 8,528) = $5,117 F -The following standards have been established for a raw material used to make product N04:

Brailey Corporation,which makes helicopter rotors,has provided the following data for October: Required: Compute the rate variances and the efficiency variances for indirect labor and power and indicate whether they are favorable or unfavorable.

Dolney Corporation has provided the following data for a recent period: -The variable overhead rate variance for supplies is closest to:

The labor rate variance is:

Galimba Corporation,which produces commercial windows,has provided the following data: -The variable overhead efficiency variance for supplies is:

An unfavorable materials quantity variance indicates that:

The Apoundright Company uses standard costing and has established the following standards for its single product: Direct materials: 2 gallons at $3 per gallon Direct labor: 0.5 hours at $8 per hour Variable overhead: 0.5 hours at $2 per hour During November,the company made 4,000 units and incurred the following costs: Direct materials purchased: 8,100 gallons at $3.10 per gallon Direct materials used: 7,600 gallons Direct labor used: 2,200 hours at $8.25 per hour Actual variable overhead: $4,175 The company applies variable overhead to products on the basis of standard direct labor-hours. -The materials price variance for November was:

Aymond Electronics Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs).The company had budgeted its fixed manufacturing overhead cost at $42,700 for the month and its level of activity at 2,000 MHs.The actual total fixed manufacturing overhead was $44,100 for the month and the actual level of activity was 1,800 MHs.What was the fixed manufacturing overhead budget variance for the month to the nearest dollar?

Which of the following represents value-added time in the manufacturing cycle?

The variable overhead rate variance is:

Kissack Corporation produces large commercial doors for warehouses and other facilities.In the most recent month,the company budgeted production of 4,000 doors.Actual production was 4,300 doors.According to standards,each door requires 9.3 machine-hours.The actual machine-hours for the month were 40,430 machine-hours.The budgeted supplies cost is $6.20 per machine-hour.The actual supplies cost for the month was $234,614.The variable overhead efficiency variance for supplies cost is:

A manufacturing company that has only one product has established the following standards for its variable overhead.The company uses direct labor-hours (DLHs) as its measure of activity. The following data pertain to operations for the last month: -What is the variable overhead efficiency variance for the month?