Exam 25: Standard Costs and Balanced Scorecard

A company developed the following per-unit standards for its product: 2 gallons of direct materials at $8 per gallon. Last month 3000 gallons of direct materials were purchased for $22800. The direct materials price variance for last month was

The budgeted overhead costs for standard hours allowed and the overhead costs applied to the product are the same amount

Budgeted overhead for Haft Inc. at normal capacity of 60000 direct labor hours is $3 per hour variable and $2 per hour fixed. In May $310000 of overhead was incurred in working 63000 hours when 64000 standard hours were allowed. -The overhead controllable variance is

The balanced scorecard

Standards may be useful in setting selling prices for finished goods.

A company uses 8400 pounds of materials and exceeds the standard by 300 pounds. The quantity variance is $1800 unfavorable. What is the standard price?

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

A manufacturing company would include setup and downtime in their direct

Dillon has a standard of 2 hours of labor per unit at $12 per hour. In producing 2000 units Dillon used 3850 hours of labor at a total cost of $46970. Dillon's total labor variance is

The difference between a budget and a standard is that

The formula for the labor price variance is

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

Hofburg's standard quantities for 1 unit of product include 2 pounds of materials and 1.5 labor hours. The standard rates are $2 per pound and $7 per hour. The standard overhead rate is $8 per direct labor hour. The total standard cost of Hofburg's product is

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 price per pound is

The per-unit standards for direct materials are 2 pounds at $5 per pound. Last month 11200 pounds of direct materials that actually cost $53000 were used to produce 6000 units of product. The direct materials quantity variance for last month was

In Zero Company's income statement they report actual gross profit of $52500 and the following variances: Materials price \ 420 Materials quantity 600 Labor price 420 Labor quantity 1,000 Overhead 900 Zero would report gross profit at standard of

A variance is the difference between actual costs and standard costs.

A direct labor price standard is frequently called the direct labor efficiency standard.

In using variance reports top management normally looks for _________________ variances.

Prescott Manufacturing manufactures widgets for distribution. The standard costs for the manufacture of widgets follow: Budgeted factory overhead was $640000. Overhead applied is based on widgets produced. The company estimated that 10000 widgets would be produced; however only 9600 were produced. Instructions Calculate the following amounts. 1. Rate at which total factory overhead is applied 2. Materials price variance 3. Total materials variance 4. Overhead volume variance 5. Overhead controllable variance