Exam 25: Budgetary Control and Responsibility Accounting

Gant Co. manufactures a product with a standard direct labor cost of two hours at $24.00 per hour. During July, 2,000 units were produced using 4,200 hours at $24.40 per hour. The labor price variance was

A company uses 40,000 gallons of materials for which they paid $9.00 a gallon. The materials price variance was $80,000 favorable. What is the standard price per gallon?

If the materials price variance is $2,400 F and the materials quantity and labor variances are each $1,800 U, what is the total materials variance?

During March, Odle Company purchases and uses 6,600 pounds of materials costing $26,730 to make 3,000 tiles. Odle Company's standard material cost per tile is $8 (2 pounds of material × $4.00). Instructions Compute the total, price, and quantity material variances for Odle Company for March.

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

Jamison Industries provided the following information about its standard costing system for 2011: Jamison applies fixed overhead at $10 per unit produced. Instructions Determine the amounts of the overhead variances.

Tebbetts Company estimated it would produce 6,200 buckets, though actual production was 6,000 during August. The standard labor cost is 2 buckets per hour at $24.00 per hour. Actual cost per hour was $24.50 with a total labor cost of $71,050. Instructions Determine the amounts of the labor price and the labor quantity variances for August.