Exam 9: Standard Costing: a Functional-Based Control Approach

During August,10,000 units were produced.The standard quantity of material allowed per unit was 10 kilograms at a standard cost of $3 per kilogram.If there was an unfavourable usage variance of $18,750 for August,what would be the actual quantity of materials used?

Bread Company has developed the following standards for one of its products. Direct materials: 10 kilograms \times\ 3 per kilogram Direct labour: 2.5 hours \times\ 8 per hour Variable manufacturing overhead: 2.5 hours \times\ 2 per hour The following activity occurred during the month of June Materials purchased: 125,000 kilograms at \ 2.60 per kilogram Materials used: 110,000 kilograms Units produced: 10,000 units Direct labour: 24,000 hours at \ 7.50 per hour Actual variable manufacturing overhead: \ 51,000 The company records materials price variances at the time of purchase. -Refer to the figure.What is the variable manufacturing overhead efficiency variance?

What differences do the usage variances focus on?

Senocot Corporation uses two different types of labour to manufacture its product.The types of labour,Assembly and Finishing,have the following standards: Labour Type Standard Mix Standard Unit Price Standard Cost Assembly 800 hours \ 12.00 per unit \ 9,600 Finishing 200 hours 8.00 per unit \ 1,600 Yield 5000 units During January,the following actual production information was provided: Labour Type Actual Mix Assembly 7,000 hours Finishing 3,000 hours Yield 45,000 units Calculate the labour efficiency and mix and yield variances.

Frekko Company collected the following information: Standard costs per unit: Variable overhead 4 machine hours @ \6 per machine hour Fixed overhead 4 machine hours @\ 10 per machine hour Actual output 20,000 units Denominator (normal capacity) output 21,000 units Actual machine hours 79,000 machine hours Actual variable overhead cost \ 540,000 Actual fixed overhead cost \ 810,000 -Refer to the figure.Using the two variance method,what is the volume variance?

Regis Corporation uses two materials in the production of its product. The materials, $\mathrm{X}$ and $\mathrm{Y}$ , have the following standards: Material Standard Mix Standard Unit Price Standard Cost 3,500 units \ 1.00 per unit \ 3,500 1.500 units 3.00 per unit \ 4.500 Yield 4,000 units $\text { During April, the following actual production information was provided: }$ Material Actual Mix 30,000 units 20,000 units Yield 36,000 units -Refer to the figure.What is the materials mix variance?

What differences do price/rate variances focus on?

Which of the following equations measures the direct labour rate variance?

Claire Company uses a standard costing system.The following information pertains to direct labour costs for the month of February: Standard direct labour rate per hour \ 15.00 Actual direct labour rate per hour \ 13.50 Labour rate variance \ 18,000 favourable Actual output 1,000 units Standard hours allowed for actual production 10,000 hours -How many actual labour hours were worked during February for Claire Company?

What are currently attainable standards?

Frekko Company collected the following information: Standard costs per unit: Variable overhead 4 machine hours @ \6 per machine hour Fixed overhead 4 machine hours @\ 10 per machine hour Actual output 20,000 units Denominator (normal capacity) output 21,000 units Actual machine hours 79,000 machine hours Actual variable overhead cost \ 540,000 Actual fixed overhead cost \ 810,000 -Refer to the figure.Using the three variance method,what is the budget variance?

Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labour for the 100 units of Product AA are as follows: Materials: Standard Actual Standard: 200 kilograms at \ 3.00 per kilogram \ 600 Actual: 220 kilograms at \ 2.85 per kilogram \6 27 Direct labour: Standard: 400 hours at \ 15.00 per hour 6,000 Actual: 368 hours at \ 16.50 per hour 6,072 -Refer to the figure.What is the journal entry to record labour variances? a. Work in Process 6,072 Payroll 6,072 b. Payroll 6,072 Work in Process 6,072 c. Work in Process 6,000 Labour Efficiency Variance 552 Labour Rate Variance 480 Payroll 6,072 d. Work in Process 6,000 Labour Rate Variance 552 Labour Efficiency Variance 480 Payroll 6,072

Crawford Company’s standard fixed overhead cost is $6 per direct labour hour based on budgeted fixed costs of $600,000. The standard allows 1 direct labour hour per unit. During 2006, Crawford produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labour. -Refer to the figure.What is the standard activity level on which Crawford based its fixed overhead rate?

In terms of variances,what is the term for the standard plus the allowable deviation?

Using more highly skilled direct labourers might affect which of the following variances?

Dubuque Company uses three materials in the production of their product.The materials,A,B,and C,have the following standards: Material Standard Mix Standard Unit Price Standard Cost A 5,000 units \ 2.00 per unit \ 10,000 B 3,000 units 4.00 per unit \ 12,000 C 2,000 units 3.00 per unit \ 6,000 Yield 9,000 units During April,the following actual production information was provided: Materal Actual Mix A 40,000 units B 20,000 units C 10,000 units Yield 60,000 units Calculate the materials usage,mix,and yield variances.

Bread Company has developed the following standards for one of its products. Direct materials: 10 kilograms \times\ 3 per kilogram Direct labour: 2.5 hours \times\ 8 per hour Variable manufacturing overhead: 2.5 hours \times\ 2 per hour The following activity occurred during the month of June Materials purchased: 125,000 kilograms at \ 2.60 per kilogram Materials used: 110,000 kilograms Units produced: 10,000 units Direct labour: 24,000 hours at \ 7.50 per hour Actual variable manufacturing overhead: \ 51,000 The company records materials price variances at the time of purchase. -Refer to the figure. What is the direct labour efficiency variance?

Which of the following is a characteristic of ideal standards?

Frekko Company collected the following information: Standard costs per unit: Variable overhead 4 machine hours @ \6 per machine hour Fixed overhead 4 machine hours @\ 10 per machine hour Actual output 20,000 units Denominator (normal capacity) output 21,000 units Actual machine hours 79,000 machine hours Actual variable overhead cost \ 540,000 Actual fixed overhead cost \ 810,000 -Refer to the figure.Using the three variance method,what is the spending variance?

During October,10,000 direct labour hours were worked at a standard cost of $10 per hour.If the direct labour rate variance for October was $4,000 unfavourable,what would be the actual cost per direct labour hour?