Exam 10: Standard Costs and Operating Performance Measures

Massie Corporation,which produces commercial safes,has provided the following data: -The variable overhead rate variance for supplies is closest to:

Aase 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 total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

Ewin Corporation is developing direct labor standards.The basic direct labor wage rate is $14.75 per hour.Employment taxes are 9% of the basic wage rate.Fringe benefits are $3.98 per hour. Required: Determine the standard rate per direct labor-hour.Show your work!

Wandersee Corporation keeps careful track of the time required to fill orders.Data concerning a particular order appear below: The delivery cycle time was:

Lantagne Corporation keeps careful track of the time required to fill orders.Data concerning a particular order appear below: -The manufacturing cycle efficiency (MCE) was closest to:

Albro Corporation keeps careful track of the time required to fill orders.The times recorded for a particular order appear below: -The throughput time was:

The following data pertain to operations for the last month: What is the variable overhead rate variance for the month? A.$6,226 U <underLine>B.</underLine> $2,050 U C.$1,940 F D.$8,166 U AR = $116,030 / 8,200 = $14.15 Variable overhead rate variance = AH (AR - SR) = 8,200 ($14.15 - $13.90) = $2,050 U -At Overland Company,maintenance cost is exclusively a variable cost that varies directly with machine-hours.The performance report for July showed that actual maintenance costs totaled $9,800 and that the associated rate variance was $200 unfavorable.If 8,000 machine-hours were actually worked during July,the budgeted maintenance cost per machine-hour was:

The materials price variance should be computed:

Reenu Company manufactures wigs out of used dental floss.The variable cost standards for wig production developed by Reenu are as follows: Variable overhead at Reenu is based on direct labor-hours.The actual results for the month of October were as follows: -What is Reenu's materials price variance for October?

The following standards for variable overhead have been established for a company that makes only one product:

Leriche Corporation has provided the following data for a recent month: -The variable overhead rate variance for indirect labor is closest to:

Under a standard cost system,the materials price variances are usually the responsibility of the:

Cole laboratories makes and sells a lawn fertilizer called Fastgro.The company has developed standard costs for one bag of Fastgro as follows: The company had no beginning inventories of any kind on Jan.1.Variable overhead is applied to production on the basis of standard direct labor-hours.During January,the following activity was recorded by the company: $\bullet$ Production of Fastgro: 4,000 bags $\bullet$ Direct materials purchased: 85,000 pounds at a cost of $32,300 $\bullet$ Direct labor worked: 390 hours at a cost of $4,875 $\bullet$ Variable overhead incurred: $1,475 $\bullet$ Inventory of direct materials on Jan.31: 3,000 pounds -The materials price variance for January is:

Plikerd Corporation has provided the following data for August: Actual total variable overhead costs: Required: Compute the variable overhead rate variances for lubricants and for supplies for August.Indicate whether each of the variances is favorable (F) or unfavorable (U).Show your work!

The following data pertain to operations concerning the product for the last month: What is the materials price variance for the month? A.$14,850 U B.$8,250 U C.$8,640 U <underLine>D.</underLine> $2,860 F AP = $60,500 / 4,400 = $13.75 Materials price variance = AQ (AP - SP) = 4,400 ($13.75 - $14.40) = $2,860 F -Discover Motor Company uses a standard cost system to collect costs related to the production of its toothpick motors.The direct labor standard for each toothpick motor is 1.25 hours at a standard cost of $9.50 per hour. During the month of May,Discover's toothpick motor production used 5,900 direct labor-hours at a total direct labor cost of $54,575.This resulted in production of 4,800 toothpick motors for May.What is Discover's labor efficiency variance for the month of May?

Lantagne Corporation keeps careful track of the time required to fill orders.Data concerning a particular order appear below: -The throughput time was:

Hirons Corporation keeps careful track of the time required to fill orders.Data concerning a particular order appear below: The manufacturing cycle efficiency (MCE) was 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 direct labor for May was closest to:

Couey Corporation,which produces highway lighting poles,has provided the following data: -The variable overhead efficiency variance for indirect labor is:

The Alpha Company produces toys for national distribution.Standards for a particular toy are: Materials: 12 ounces per unit at 56'per ounce. Labor: 2 hours per unit at $2.75 per hour. During the month of December,the company produced 1,000 units.Information for the month follows: Materials: 14,000 ounces were purchased and used at a total cost of $7,140. Labor: 2,500 hours worked at a total cost of $8,000. -The materials price variance is: