Exam 10: Standard Costs and Overhead Analysis

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 variable overhead efficiency variance for the year?

Yola Company manufactures a product with standards for direct labour of 4 direct labour-hours per unit at a cost of $12.00 per direct labour-hour.During June,1,000 units were produced using 4,100 hours at $12.20 per hour.What was the direct labour efficiency variance?

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: -What was the total predetermined overhead rate,rounded to the nearest cent?

Union Company uses a standard cost accounting system.The following overhead costs and production data are available for August: Standard Fixed Overhead Rate \ 1.00 per hour Standard Variable Overhead Rate \ 4.00 per hour Denominator Activity 40,000 hours Actual Hours 39,500 hours Standard Hours Allowed for Output 39,000 hours Overapplied Overhead \ 2,000 What was the total amount of overhead applied to work in process in August?

The Alpha Company produces toys for national distribution. Standards for a particular toy are: Materials: 12 grams per unit at $0.56 per gram. Labour: 2 hours per unit at $2.75 per hour. During the month of December, the company produced 1,000 units. Information for the month follows: Materials: 14,000 grams were purchased and used at a total cost of $7,140. Labour: 2,500 hours worked at a total cost of $8,000. -What was the labour rate variance?

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 price variance for the direct materials acquired by the company during March?

The following labour standards have been established for a particular product: Standard labour hours per unit of output 8.3 metres Standard labour rate \ 12.10 per metre The following data pertain to operations concerning the product for the last month: Actual hours worked 6,100 hours Actual total labour cost \ 71,370 Actual output 900 units What was the labour efficiency variance for the month?

If the standard hours allowed for the actual output of the period is greater than the denominator level of activity (in hours),then the overhead budget variance will be unfavourable.

Tyro Company has a standard cost system that applies manufacturing overhead to units of product on the basis of direct labour hours (DLHs).The following information is available: Actual Total Overhead Costs \ 15,000 Actual Fixed Overhead Costs \ 7,200 Budgeted Fixed Overhead Costs \ 7,000 Actual Hours Worked 3,500 DLHs Standard Hours Allowed for the Output 3,800 DLHs Variable Overhead Rate \ 2.50 per DLH Based on these data,what was the variable overhead spending variance?

Management by exception means that a manager's attention is directed toward those parts of the organization where things are NOT proceeding according to plans.

Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows: The company had no beginning inventories of any kind on January 1. Variable manufacturing overhead is applied to production on the basis of direct labour hours. The results of the company's operations during January are as follows: -What was the labour efficiency variance for January?

The material quantity variance is computed based on the quantity of all materials purchased during the period.

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 budget variance for the period,rounded to the nearest dollar?

Mauve Company uses a standard cost system that applies manufacturing overhead to units of product on the basis of direct labour hours (DLHs).The following data pertain to last month: Actual Hours Worked 2,400 Budgeted Fixed Overhead Costs \ 10,000 Actual Fixed Overhead Costs \ 10,400 Standard Hours Allowed 2,500 Predetermined Overhead Rate \ 5 per DLH What was the fixed overhead budget variance?

At Jacobson Company,indirect labour is a variable cost that varies with direct labour hours.Last month's performance report showed that total actual indirect labour cost was $5,780 for the month and that the associated spending variance was $245 favourable.If 24,100 direct labour hours were actually worked last month,what must be the flexible budget cost formula for indirect labour (per direct labour hour)?

A favourable materials price variance coupled with an unfavourable materials quantity variance would MOST likely result from which of the following?

The following labour standards have been established for a particular product: Standard labour hours per unit of output Standard labour rate 2.8 hours \ 11.50 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 6,900 hours Actual total labour cost \ 80,385 Actual output 2,300 units Required: a) What was the labour rate variance for the month? b) What was the labour efficiency variance for the month?

Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows: The company had no beginning inventories of any kind on January 1. Variable manufacturing overhead is applied to production on the basis of direct labour hours. The results of the company's operations during January are as follows: -What was the materials quantity variance for January?

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 total predetermined overhead rate,rounded to the nearest cent?

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: -How much overhead was applied to products during the period,rounded to the nearest dollar?