Exam 9: Standard Costing and Variances

The difference between the actual volume and the budgeted volume, multiplied by the fixed overhead rate based on budgeted volume, is the:

Madrid Co. has a direct labor standard of 4 hours per unit of output. Each employee has a standard wage rate of $11 per hour. During February, Madrid Co. paid $99,500 to employees for 9,150 hours worked. 2,400 units were produced during February. What is the flexible budget amount for direct labor?

Venus Company applies overhead based on direct labor hours. The variable overhead standard is 10 hours at $3.50 per hour. During October, Venus Company spent $157,600 for variable overhead. 47,440 labor hours were used to produce 4,800 units. What is the over- or underapplied variable overhead?

A master budget is an example of a:

A budget depends upon:

Melrose Inc. uses standard costing. Last period, its flexible budget for labor was $144,000. The direct labor rate variance was $5,000 favorable, and the direct labor efficiency variance was $6,000 unfavorable. In the journal entry to record the use of direct labor, the amount credited to wages payable would be:

The direct material quantity variance is the difference between the actual quantity and the standard quantity of materials multiplied by the actual price

Delaware Corp. prepared a master budget that included $21,360 for direct materials, $33,600 for direct labor, $18,000 for variable overhead, and $46,440 for fixed overhead. Delaware Corp. planned to sell 4,000 units during the period, but actually sold 4,300 units. What would Delaware's direct materials cost be if it used a flexible budget for the period based on actual sales?

Warner Co. has budgeted fixed overhead of $150,000. Practical capacity is 6,000 units, and budgeted production is 5,000 units. During February, 4,800 units were produced and $155,600 was spent on fixed overhead. What is the budgeted fixed overhead rate based on practical capacity?

Scarlett Company has a direct material standard of 3 gallons of input at a cost of $5 per gallon. During July, Scarlett Company purchased and used 7,500 gallons. The direct materials quantity variance was $750 unfavorable and the direct materials price variance was $3,000 favorable. How many units were produced?

Exeter has a material standard of 1 pound per unit of output. Each pound has a standard price of $26 per pound. During July, Exeter paid $66,100 for 2,475 pounds, which it used to produce 2,350 units. What is the direct materials price variance?

Branch Corp. uses a standard cost system to account for the costs of its one product. Variable overhead is applied using direct labor hours. Standards allowed for each unit are 3 hours of labor at a variable overhead rate of $10. During November, Branch Corp. produced 2,300 units. Payroll totaled $97,780 for 7,140 hours worked. Variable overhead incurred totaled $73,230. Calculate the: a. variable overhead rate variance. b. variable overhead efficiency variance.

Which of the following types of standards can be achieved only under perfect conditions?

Willow Inc. has provided the following information: Budgeted production = 7,000 units Calculate the: a. direct materials price variance. b. direct materials quantity variance. c. direct labor rate variance. d. direct labor efficiency variance. e. variable overhead rate variance. f. variable overhead efficiency variance. g. fixed overhead spending variance.

Tulip Inc. uses standard costing, and its manufacturing standards are as follows: 2 pounds of materials at $13 per pound, and 3 hours of labor at $10 per hour. Budgeted production last period was 5,000 units, and actual production was 4,800 units. Last period, Tulip purchased and used 9,800 pounds of materials for $135,000, and used 15,000 labor hours, costing $145,000. What is the journal entry to record direct labor costs?

The difference between the actual labor hours and the standard labor hours, multiplied by the standard labor rate is the:

The fixed overhead volume variance is the difference between actual production volume and actual sales volume

Venus Company applies overhead based on direct labor hours. The variable overhead standard is 10 hours at $3.50 per hour. During October, Venus Company spent $157,600 for variable overhead. 47,440 labor hours were used to produce 4,800 units. What is the variable overhead rate variance?

Delaware Corp. prepared a master budget that included $21,360 for direct materials, $33,600 for direct labor, $18,000 for variable overhead, and $46,440 for fixed overhead. Delaware Corp. planned to sell 4,000 units during the period, but actually sold 4,300 units. What would Delaware's variable overhead cost be if it used a flexible budget for the period based on actual sales?

Dill has a fixed overhead spending variance of $3,900 unfavorable. During July, Dill budgeted production of 4,500 units, it actually produced 4,700 units, and it actually spent $71,400 on fixed overhead. How much was budgeted fixed overhead?