Exam 9: Standard Costing: a Functional-Based Control Approach

Bodacious Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows: Materials: Standard Actual Standard: 200 pounds at \ 3.00 per pound \ 600 Actual: 220 pounds at \ 2.85 per pound \ 627 Direct labor: Standard: 400 pounds at \ 15.00 per pound \ 600 Actual: 368 pounds at \ 16.50 per pound \ 6,027 What is the labor efficiency variance for Bodacious Corporation?

San Francisco Corporation uses two materials in the production of its product. The materials, X and Y, have the following standards: Material Standard Mix Standard Unit Price Standard Cost X 3,500 units \ 1.00 per unit \ 3,500 Y 1,500 units 3.00 per unit \ 4,500 Yield 4,000 units During April, the following actual production information was provided: Material Actual Mix 30,000 units 20,000 units Yield 36,000 units What is the materials mix variance?

Using more highly skilled direct laborers might affect which of the following variances?

The standard cost sheet includes all of the following EXCEPT

How are standards developed? What is the difference between ideal and currently attainable standards?

Standard costs are the amount that should be spent to produce a product or service.

The standard overhead cost assigned to each unit of product manufactured is called the

The unit standard cost is

Biscuit Company has developed the following standards for one of its products. Direct labor hours is the driver used to assign overhead costs to products. Direct materials: 10 pounds \times\ 3 per pound Direct labor: 2.5 hours \times\ 8 per hour Variable manufacturing overhead: 2.5 hours \times\ 2 per hour $\text { The following activity occurred during the month of June: }$ Materials purchased: 125,000 pounds at \ 2.60 per pound Materials used: 110,000 pounds Units produced: 10,000 units Direct labor: 24,000 hours at \ 7.50 per hour Actual variable manufacturing overhead: \ 51,000 The company records materials price variances at the time of purchase. The direct labor efficiency variance is

If the standard quantity (SQ), actual quantity (AQ), standard price (SP), and actual price (AP) are 350 units, 400 units, $12, and $13 respectively, then the total budget variance is _____.

All variances accounts are closed out at the end of the year.

Organics Corporation uses two different types of labor to manufacture its product. The types of labor, Cutting and Setup, have the following standards: Labor Type Standard Mix Standard Unit Price Standard Cost Cutting 400 hours \ 6.00 per unit \ 2,400 Setup 100 hours 4.00 per unit \ 400 Yield 2,500 units During July, the following actual production in formation was provided: Labor Type A.ctual Mix Cutting 3,500 hours Setup 1,500 hours Yield 22,500 units Required: Calculate the labor mix and yield variances.

A variable overhead efficiency variance could be caused by

Which of the following is true about the variable overhead spending variance?

San Francisco Corporation uses two materials in the production of its product. The materials, X and Y, have the following standards: Material Standard Mix Standard Unit Price Standard Cost X 3,500 units \ 1.00 per unit \ 3,500 Y 1,500 units 3.00 per unit \ 4,500 Yield 4,000 units During April, the following actual production information was provided: Material Actual Mix 30,000 units 20,000 units Yield 36,000 units What is the materials yield variance?

Colina Production Company uses a standard costing system. The following information pertains to the current year. Direct labor hours is the driver used to assign overhead costs to products. Actual production 5,500 units Actual factory overhead costs ( \ 16,500 is fixed) \ 40,125 Actual direct labor costs (11,250 hours) \ 131,625 Standard direct labor for 5,500 units: Standard hours allowed 11,000 hours Labor rate \ 12.00 The factory overhead rate is based on an activity level of 10,000 direct labor hours. Standard cost data for 5,000 units is as follows: Variable factory overhead \ 22,500 Fixed factory overhead 13,500 Total factory overhead What is the fixed overhead volume variance for Colina Production Company?

Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July: Standard price per lb. \ 18.00 Actual purchase price per lb. \ 16.50 Quantity purchased 3,100. Quantity used 2,950 Standard quantity allowed for actual output 3,000 Actual output 1,000 units Malkovich Company reports its material price variances at the time of purchase. What is the material usage variance for Malkovich Company?

Compare and contrast mix and yield variances.

If actual fixed manufacturing overhead was $55,000 and there was a $1,400 unfavorable spending variance and a $1,000 unfavorable volume variance, budgeted fixed manufacturing overhead must have been

A materials price variance would NOT be caused by