Exam 23: Flexible Budgets and Standard Costs

Hassock Corp.produces woven wall hangings.It takes 2 hours of direct labor to produce a single wall hanging.Bartels' standard labor cost is $12 per hour.During August,Bartels produced 10,000 units and used 21,040 hours of direct labor at a total cost of $250,376.What is Bartels' labor rate variance for August?

Fletcher Company collected the following data regarding production of one of its products.Compute the variable overhead spending variance.

Another name for a static budget is a variable budget.

Zip-up Company provides the following data developed for its master budget: Required: Prepare flexible budgets for sales of 20,000,22,000 and 24,000 units.Use a contribution margin format.

A budget performance report shows budgeted amounts,actual amounts,and differences between budgeted and actual amounts.

In sales variance analysis,the budgeted amount of unit sales is the predicted activity level and the budgeted cost of the goods sold can be treated as a "standard" price.

A management approach that focuses attention on significant differences from plans and gives less attention to areas where performance is reasonably close to standards is known as ___________________.

A company uses the following standard costs to produce a single unit of output. During the latest month,the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output.Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked.Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400.Based on this information,the direct materials quantity variance for the month was:

Use the following data to find the total direct labor cost variance if the company produced 3,500 units during the period.

Lavoie Company planned to use 18,500 pounds of material costing $2.50 per pound to make 4,000 units of its product.In actually making 4,000 units,the company used 18,800 pounds that cost $2.54 per pound.Calculate the direct materials quantity variance.

A company provided the following direct materials cost information.Compute the cost variance.

In preparing flexible budgets,the costs that remain constant in total are _______________ costs.Those costs that change in total are _______________ costs. Answers can appear in any order.

Milltown Company specializes in selling used cars.During the month,the dealership sold 22 cars at an average price of $15,000 each.The budget for the month was to sell 20 cars at an average price of $16,000.Compute the dealership's sales price variance for the month.

Cavern Company's output for the current period results in a $5,250 unfavorable direct material price variance.The actual price per pound is $56.50 and the standard price per pound is $55.00.How many pounds of material are used in the current period?

Sanchez Company's output for the current period was assigned a $400,000 standard direct labor cost.The direct labor variances included a $10,000 unfavorable direct labor rate variance and a $4,000 favorable direct labor efficiency variance.What is the actual total direct labor cost for the current period?

Standard material costs,standard labor costs,and standard overhead costs can be obtained from standard cost tables published by the Institute of Management Accountants.

If ending variances account balances are material,they should always be closed directly to Cost of Goods Sold.

Parallel Enterprises has collected the following data on one of its products.During the period the company produced 25,000 units.The direct materials quantity variance is:

Standard costs are used in the calculation of:

The following company information is available.The direct materials quantity variance is: