Exam 25: Standard Costs and Balanced Scorecard

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

Standard cost + price variance + quantity variance = Budgeted cost.

Standard costs may be incorporated into the accounts in the general ledger.

Aztec Inc.'s standard labor cost of producing one unit of product is 2 hours at the rate of $14.00 per hour. During February 52000 hours of labor are incurred at a cost of $13.80 per hour to produce 25000 units of product. Instructions (a) Compute the labor price and labor quantity variances. (b) Journalize the incurrence of the labor costs and the assignment of direct labor to production assuming a standard cost system is used.

The final decision as to what standard costs should be is the responsibility of

The direct materials quantity standard would not be expressed in

Use the following information for questions Budgeted overhead for Cinnabar Industries at normal capacity of 30000 direct labor hours is $6 per hour variable and $4 per hour fixed. In May $310000 of overhead was incurred in working 31500 hours when 32000 standard hours were allowed. -The overhead controllable variance is

In October Glazier Inc. reports 42000 actual direct labor hours and it incurs $194000 of manufacturing overhead costs. Standard hours allowed for the work done is 40000 hours. Glazier's predetermined overhead rate is $5.00 per direct labor hour. Instructions Compute the total manufacturing overhead variance.

The formula for the materials price variance is

The following direct labor data pertain to the operations of Murray Industries for the month of November: Standard labor rate \ 15.00 per hr. Actual hours incurred 9,000 The standard cost card shows that 2.5 hours are required to complete one unit of product. The actual labor rate incurred exceeded the standard rate by 10%. Four thousand units were manufactured in November. Instructions (a) Calculate the price quantity and total labor variances. (b) Journalize the entries to record the labor variances.

Allowance for spoilage is part of the direct

Dillon has a standard of 1.5 pounds of materials per unit at $6 per pound. In producing 2000 units Dillon used 3100 pounds of materials at a total cost of $18135. Dillon's materials price variance is

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

The materials price standard is based on the purchasing department's best estimate of the cost of raw materials.

The direct labor quantity standard is sometimes called the direct labor

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 6000 pounds although the standard quantity allowed for the output was 5400 pounds. Edgar Inc.'s materials price variance is

The standard rate of pay is $12 per direct labor hour. If the actual direct labor payroll was $47040 for 4000 direct labor hours worked the direct labor price (rate) variance is

If the standard hours allowed are less than the standard hours at normal capacity

The overhead volume variance is

The perspectives included in the balanced scorecard approach include all of the following except the