Deck 22: Standard Costing and Variance Analysis

Question 1

An unfavorable direct labor rate variance is recorded as a debit.

Answer 1

True

Question 2

Use the following information to answer the following Questions
The following actual and standard cost data for direct material and direct labor relate to the production of 4,000 units of product:


-Determine the labor rate variance.

A) $1,200 F
B) $1,200 U
C) $1,290 F
D) $1,290 U
E) None of the above

Answer 2

$1,290 F

Question 3

Use the following information to answer the following Questions
The following actual and standard cost data for direct material and direct labor relate to the production of 4,000 units of product:


-Determine the labor efficiency variance.

A) $4,410 U
B) $4,410 F
C) $4,500 F
D) $4,500 U
E) None of the above

Answer 3

$4,500 U

Question 4

Use the following information to answer the following Questions
The following actual and standard cost data for direct material and direct labor relate to the production of 4,000 units of product:


-Determine the labor efficiency variance.

A) $2,000 F
B) $2,000 U
C) $2,050 F
D) $2,050 U
E) None of the above

Question 5

Use the following information to answer the following Questions
The following actual and standard cost data for direct material and direct labor relate to the production of 4,000 units of product:


-Determine the materials price variance.

A) $1,200 F
B) $1,200 U
C) $1,155 U
D) $1,155 F
E) None of the above

Question 6

Use the following information to answer the following Questions
Kraig Fencing considers 4,000 direct labor hours or 100 fences to be its normal monthly capacity. Its standard variable overhead rate is $9 per direct labor hour. During the current month, $33,500 of variable overhead costs were incurred in working 3,800 direct labor hours to complete 92 fences.

-What is the variable overhead efficiency variance?

A) $1,080 U
B) $1,080 F
C) $1,800 U
D) $1,800 F
E) None of the above

Question 7

Use the following information to answer the following Questions
Phillips Fencing considers 6,000 direct labor hours or 200 fences to be its normal monthly capacity. Its standard variable overhead rate is $7 per direct labor hour. During the current month, $44,500 of variable overhead costs were incurred in working 6,200 direct labor hours to complete 215 fences.

-What is the variable overhead spending variance?

A) $1,100 F
B) $2,500 F
C) $1,100 U
D) $2,500 U
E) None of the above

Question 8

Use the following information to answer the following Questions
Phillips Fencing considers 6,000 direct labor hours or 200 fences to be its normal monthly capacity. Its standard variable overhead rate is $7 per direct labor hour. During the current month, $44,500 of variable overhead costs were incurred in working 6,200 direct labor hours to complete 215 fences.

-What is the variable overhead efficiency variance?

A) $1,400 U
B) $1,750 U
C) $1,400 F
D) $1,750 F
E) None of the above

Question 9

Use the following information to answer the following Questions
Landreth Fencing considers 3,000 direct labor hours or 50 fences to be its normal monthly capacity. Its standard variable overhead rate is $12 per direct labor hour. During the current month, $29,800 of variable overhead costs were incurred in working 2,950 direct labor hours to complete 45 fences.

-What is the variable overhead spending variance?

A) 5,600 F
B) 5,600 U
C) 6,200 F
D) 6,200 U
E) None of the above

Question 10

Use the following information to answer the following Questions
The following data relates to Koontz Corporation's operations for the month. 1,000 finished units of product were produced and the normal monthly capacity is 2,200 direct labor hours.


-What is the materials efficiency variance?

A) $1,960 U
B) $1,960 F
C) $2,000 U
D) $2,000 F
E) None of the above

Question 11

Use the following information to answer the following Questions
The following data relates to Koontz Corporation's operations for the month. 1,000 finished units of product were produced and the normal monthly capacity is 2,200 direct labor hours.


-What is the labor efficiency variance?

A) $4,000 U
B) $8,000 U
C) $4,000 F
D) $8,000 F
E) None of the above

Question 12

Use the following information to answer the following Questions
The following data relates to Koontz Corporation's operations for the month. 1,000 finished units of product were produced and the normal monthly capacity is 2,200 direct labor hours.


-What is the variable overhead efficiency variance?

A) $1,200 F
B) $1,200 U
C) $1,600 F
D) $1,600 U
E) None of the above

Question 13

Use the following information to answer the following Questions
The following data relates to Camire Corporation's operations for the month. 3,000 finished units of product were produced and the normal monthly capacity is 4,800 direct labor hours.


-What is the materials efficiency variance?

A) $2,500.00 U
B) $2,500.00 F
C) $2,537.50 U
D) $2,537.50 F
E) None of the above

Question 14

Use the following information to answer the following Questions
The following data relates to Camire Corporation's operations for the month. 3,000 finished units of product were produced and the normal monthly capacity is 4,800 direct labor hours.


-What is the labor efficiency variance?

A) $5,970 U
B) $6,000 U
C) $5,970 F
D) $6,000 F
E) None of the above

Question 15

Use the following information to answer the following Questions
The following data relates to Camire Corporation's operations for the month. 3,000 finished units of product were produced and the normal monthly capacity is 4,800 direct labor hours.


-What is the variable overhead spending variance?

A) $3,000 F
B) $3,000 U
C) $4,500 F
D) $4,500 U
E) None of the above

Question 16

Use the following information to answer the following Questions
The following data relates to Camire Corporation's operations for the month. 3,000 finished units of product were produced and the normal monthly capacity is 4,800 direct labor hours.


-What is the variable overhead efficiency variance?

A) $1,500 U
B) $1,500 F
C) $3,000 U
D) $3,000 F
E) None of the above

Question 17

Martin Corporation's accountant provided the following information:
If there is a $3,750 Favorable variable overhead efficiency variance, what is the variable overhead spending variance?

Question 18

The following data relates to Pokagon Corporation's operations for the month. Pokagon produced 4,800 units and the normal monthly capacity is 20,000 direct labor hours.
Use fork diagrams to calculate the following variances:
a. Materials price variance
b. Materials efficiency variance
c. Labor rate variance
d. Labor efficiency variance
e. Variable overhead spending variance
f. Variable overhead efficiency variance

Question 19

What are variances?