Exam 10: Standard Costs for Control: Direct Material and Direct Labour

Dexter Surgical Tools has set the following perfection direct labour standard: 0.5 hours at $20 per hour,for each unit of Tool #11.The company plans to produce 1200 units of Tool #11 in July;however,the actual production was 1000 units and only 900 units were actually sold.The actual labour cost for July was $22 per hour.If Dexter Surgical Tools decides to use a practical standard instead of the perfection standard,the labour efficiency variance is likely to:

A particular firm with zero material inventory purchased 30 000 kg of material and used 25 000 kg.For control purposes,it is recommended that firms calculate the material price variance at the time of purchase.The variance could alternatively be calculated at the time of usage of that material.Which of the following statements most correctly reflects a comparison of the two methods for this firm?

I Wear Optometry determined the following variances had occurred during the month of September: The company made 1600 pairs of eyeglasses during the month using 2000 direct labour hours.The standard wage rate per hour is $14.50.What is the number of standard hours allowed for one pair of eyeglasses?

Twister Pty Ltd has set direct labour standards of 3 hours per unit and $5 per hour.During the month 2900 hours at a total cost of $17 400 were used to produce 1000 units.Determine the direct labour price variance.

Which of the following statements is/are true?

Which department typically is responsible for an unfavourable materials price variance?

Cultco Company Ltd has set the following direct material standards per unit of product: 2.5 kg @ $3.00 per kg;$7.50 per unit.During April,actual direct material purchased and used amounted to 8000 kg at a cost of $3.10 per kg.Actual production amounted to 3000 units.Determine Cultco's direct material quantity variance.

Which of the following statements is false concerning the two ways to set standards?

Which of the following statements is/are false?

Variance analysis is used to evaluate actual performance by analysing the differences between standard and actual costs.

Given the following information,calculate the materials price variance:

Which of the following statements is false?

Which of the following statements is a definition of standard quantity of direct materials allowed for a period? Standard quantity of direct materials is:

A labour efficiency variance is shown by:

The production supervisor generally does not influence the:

What is the most viable rule of thumb for choosing variances that should be investigated?

Flexer Company Ltd has set the following standards for the production of one unit of product.Normal production each month is 500 units.During June,actual production amounted to 420 units.All direct material was purchased and used this month.Actual cost amounted to: Determine the direct labour rate variance for June production.

Selected data about a firm's materials follows.What amount would be debited to work in process account for materials used?

A labour rate variance is shown by:

A favourable labour rate variance leads to a: