Exam 11: Reporting and Analyzing Stockholders Equity

The standard number of hours that should have been worked for the output attained is 6,000 direct labor hours and the actual number of direct labor hours worked was 6,300.If the direct labor price variance was $3,150 unfavorable, and the standard rate of pay was $9 per direct labor hour, what was the actual rate of pay for direct labor?

A favorable variance

Edgar, Inc.has a materials price standard of $2.00 per pound.Six thousand pounds of materials were purchased at $2.20 a pound.The actual quantity of materials used was 6,000 pounds, although the standard quantity allowed for the output was 5,400 pounds. Edgar, Inc.'s materials quantity variance is

If a company is concerned with the potential negative effects of establishing standards, it should

Normal standards should be rigorous but attainable.

There could be instances where the production department is responsible for a direct materials price variance.

The customer perspective of the balanced scorecard approach

The per-unit standards for direct labor are 2 direct labor hours at $15 per hour.If in producing 1,800 units, the actual direct labor cost was $48,000 for 3,000 direct labor hours worked, the total direct labor variance is

Shipp, Inc.manufactures a product requiring two pounds of direct material.During 2016, Shipp purchases 24,000 pounds of material for $99,200 when the standard price per pound is $4.During 2016, Shipp uses 22,000 pounds to make 12,000 products.The standard direct material cost per unit of finished product is

When is a variance considered to be 'material'?

If production exceeds normal capacity, the overhead volume variance will be favorable.

The predetermined overhead rate for Zane Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2.The amount of budgeted overhead costs at normal capacity of $150,000 was divided by normal capacity of 30,000 direct labor hours, to arrive at the predetermined overhead rate of $5.Actual overhead for June was $9,500 variable and $6,050 fixed, and standard hours allowed for the product produced in June was 3,000 hours.The total overhead variance is

In Zero Company's income statement, they report gross profit of $55,000 at standard and the following variances: Materials price \ 420 Materials quantity 600 Labor price 420 Labor quantity 1,000 Overhead 900 Zero would report actual gross profit of

The overhead controllable variance is the difference between the actual overhead costs incurred and the budgeted costs for the standard hours allowed.

Clark Company manufactures a product with a standard direct labor cost of two hours at $18.00 per hour.During July, 2,000 units were produced using 4,200 hours at $18.30 per hour.The labor quantity variance was

Most companies that use standards set them at

The standard quantity allowed for the units produced was 4,500 pounds, the standard price was $2.50 per pound, and the materials quantity variance was $375 favorable.Each unit uses 1 pound of materials.How many units were actually produced?

Manufacturing overhead costs are applied to work in process on the basis of

Which is not one of the four most commonly used perspectives on a balanced scorecard?

Standard costs