Exam 11: Reporting and Analyzing Stockholders Equity

Budgeted overhead for Haft, Inc.at normal capacity of 60,000 direct labor hours is $3 per hour variable and $2 per hour fixed. In May, $310,000 of overhead was incurred in working 63,000 hours when 64,000 standard hours were allowed.The overhead volume variance is

The overhead variances measure whether overhead costs Are Effectively Managed Were Used Effectively a. Controllable Controllable and Volume b. Controllable Volume c. Controllable and Volume Controllable d. Volume Controllable

The standard unit cost is used in the calculation of which of the following variances? Materials Price Variance Materials Quantity Variance a. No No b. No Yes c. Yes No d. Yes Yes

An unfavorable labor quantity variance may be caused by

If actual costs are less than standard costs, the variance is favorable.

The investigation of a materials quantity variance usually begins in the

Which of the following statements is false?

The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing. Variable manufacturing overhead costs \ 92,400 Fixed manufacturing overhead costs \ 55,440 Normal production level in labor hours 30,800 Normal production level in units 5,775 Standard labor hours per unit 4 During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $151,200.Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs.Overhead is applied on the basis of direct labor hours.Fergie's volume overhead variance is

A standard cost is

A manufacturing company would include setup and downtime in their direct

Which of the following statements about overhead variances is false?

Income statements prepared internally for management often show cost of goods sold at standard cost and variances are

Use the following information for questions Oxnard Industries produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is .3 pounds and .1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $.10 per pound, and receiving and handling costs are $.07 per pound. The hourly wage rate is $12.00 per hour, but a raise which will average $.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is .2 hours and .1 hours, respectively. -The standard direct materials quantity per unit is

A company developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound.Last month, 1,500 pounds of direct materials were purchased for $5,700.The direct materials price variance for last month was

A company developed the following per-unit standards for its product: 2 gallons of direct materials at $8 per gallon.Last month, 3,000 gallons of direct materials were purchased for $22,800. The direct materials price variance for last month was

The per-unit standards for direct materials are 2 gallons at $4 per gallon.Last month, 11,200 gallons of direct materials that actually cost $42,400 were used to produce 6,000 units of product.The direct materials quantity variance for last month was

The standard predetermined overhead rate used in setting the standard overhead cost is determined by dividing

Dillon has a standard of 1.5 pounds of materials per unit, at $6 per pound.In producing 2,000 units, Dillon used 3,100 pounds of materials at a total cost of $18,135.Dillon's total variance is

Unfavorable materials price and quantity variances are generally the responsibility of the Price Quantity a. Purchasing department Purchasing Department b. Purchasing department Production Department c. Production department Production Department d. Production Department Purchasing Department

If standard costs are incorporated into the accounting system,