Exam 10: Standard Costs and Overhead Analysis

The Litton Company has established standards as follows: Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased. The company applies variable manufacturing overhead to products on the basis of direct labour hours. -What was the variable overhead spending variance?

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company uses direct labour hours (DLHs) as its measure of activity. The following data pertain to operations for the last month: -For March,what was the fixed overhead volume variance?

Dori Castings is a job order shop that uses a standard cost system to account for its production costs. Manufacturing overhead costs are applied to production on the basis of direct labour hours. -A volume variance will exist for Dori in a month under which of the following conditions?

A manufacturer of industrial equipment has a standard costing system based on direct labour hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: -How much overhead was applied to products during the period,rounded to the nearest dollar?

A furniture manufacturer has a standard costing system based on machine hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: -How much overhead was applied to products during the period,rounded to the nearest dollar?

Capacity analysis is most affected by the presence of variable costs,NOT fixed costs.

The predetermined overhead rate (variable and fixed)is $7.50 per machine hour,and the denominator activity level is 135,000 machine hours.If the variable portion of the predetermined overhead rate is $3.00 per machine hour,what is the budgeted fixed factory overhead for the year?

Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product: During March, Bryan purchased 165,000 kilograms of direct materials at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000 units of product during March, using 151,000 kilograms of direct materials and 32,000 direct labour hours. -What was the direct materials quantity variance for March?

Which of the following variances is caused by a difference between the denominator activity in the predetermined overhead rate and the standard hours allowed for the actual production of the period?

Sucher Company uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of machine hours.The company's condensed flexible budget for manufacturing overhead is given below: Variable overhead costs Fixed overhead costs Total overhead costs Per Machine Hours Machine Hours 20,000 25,000 30,000 \3 \ 60,000 \ 75,000 \ 90,000 300,000 300,000 300,000 \ 360,000 \ 375,000 \ 390,000 The denominator level of activity is 30,000 machine hours. Standards call for 2.5 machine hours per unit of output. Actual activity and manufacturing overhead costs for the year are given below: Units produced 12,800 units Machine hours used 31,600 machine hours Overhead costs incurred: Variable costs \ 96,000 Fixed costs \ 297,000 Required: a) What are the standard hours allowed for the output? b) What was the variable overhead spending variance? c) What was the variable overhead efficiency variance? d) What was the fixed overhead budget variance? e) What was the fixed overhead volume variance? f) (Appendix 10B) Prepare a journal entry to record the variable overhead costs incurred and applied, including the results of the variance analysis. g) (Appendix 10B) Prepare a journal entry to record the fixed overhead costs incurred and applied, including the results of the variance analysis.

A manufacturer of industrial equipment has a standard costing system based on machine hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: -How much overhead was applied to products during the period,rounded to the nearest dollar?

A manufacturing company has a standard costing system based on machine hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: -What was the fixed overhead volume variance for the period,rounded to the nearest dollar?

An outdoor barbecue grill manufacturer has a standard costing system based on machine hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: -What was the fixed overhead volume variance for the period,rounded to the nearest dollar?

Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product: During March, Bryan purchased 165,000 kilograms of direct materials at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000 units of product during March, using 151,000 kilograms of direct materials and 32,000 direct labour hours. -What was the direct labour rate variance for March?

King Company estimated that it would operate its manufacturing facilities at 800,000 direct labour hours for the year, which served as the denominator activity in the predetermined overhead rate. The total budgeted manufacturing overhead for the year was $2,000,000, of which $1,600,000 was variable and $400,000 was fixed. The standard variable overhead rate was $2 per direct labour hour. The standard direct labour time was 3 direct labour hours per unit. The actual results for the year are presented below: -What was the fixed overhead volume variance for the year?

What do the terms "standard quantity allowed" or "standard hours allowed" mean?

The Clark Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow: -What was the total standard cost for variable overhead for May?

Which of the following statements concerning practical standards is NOT correct?

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: -What was the materials price variance for the month?

The Dillon Company makes and sells a single product and uses a flexible budget for overhead to plan and control overhead costs. Overhead costs are applied on the basis of direct labour hours. The standard cost card shows that 5 direct labour hours are required per unit. The Dillon Company had the following budgeted and actual data for March: -What was the variable overhead efficiency variance for March?