Exam 11: Standard Costs and Variances

Dire Corporation uses the following standard costs for a single unit of product: Actual data for the month showed overhead costs of $425,000 for 22,500 units produced.What is the difference between actual overhead costs and standard overhead costs allocated to products?

Myles Company budgeted 10,500 pounds of direct materials costing $23.50 per pound to make 5,300 units of product.The company actually purchased 11,000 pounds of direct materials costing $25.00 per pound to make the 5,300 units.What is the direct materials price variance?

Which term below is best paired with "a summarized budget that can easily be computed for several volume levels"?

The actual cost of direct labor per hour is $16.00 and the standard cost of direct labor per hour is $15.50.The direct labor hours allowed per finished unit is 0.5 hour.During the current period,5,500 units of finished goods were produced using 3,000 direct labor hours.How much is the direct labor rate variance?

On the line in front of each variance,enter the letters of the items needed to compute that variance.You will enter more than one item on each line. A.Actual labor rate B.Actual labor hours C.Standard labor rate D.Standard labor hours ________ Direct labor rate variance ________ Direct labor efficiency variance

The variable manufacturing overhead (MOH)rate variance is calculated as Actual Hours × (Actual Rate - Standard Rate).

Crown Industries has the following information about its standards and production activity for December: Actual manufacturing overhead cost incurred,$92,500 Variable manufacturing overhead cost @ $3.25 per unit produced Fixed manufacturing overhead cost @ $1.50 per unit produced ($22,500/15,000 budgeted units) Actual units produced,5,400 Assume the allocation base for fixed overhead costs is the number of units to be produced. How much are the standard overhead costs allocated to actual production?

Up-to-date standard costs provide a benchmark by which to evaluate actual costs and operations.

Michael Corporation manufactures railroad cars,which is its only product.The standards for railroad cars are as follows: During the month of March,the company produced 1,650 railroad cars.Related production data for the month follows: What is the direct labor rate variance for the month?

A favorable direct materials price variance indicates which of the following?

Coltrane Music manufactures musical instrument for sale to students and professionals.The information for one of Coltrane's most popular products,professional saxophones,follows: What is the labor rate variance for saxophones?

Justin Time Guitars manufactures electric guitars.The following data relate to the standards for direct labor: Justin Time had the following actual results for March: What is the direct labor efficiency variance for March?

The direct materials price variance is the difference between the Actual Price (AP)and the Standard Price (SP),multiplied by the Actual Quantity Purchased (AQP).

Fabian Fabrication machines heavy-duty brake rotors that are used on commercial airliners.Fabian's management developed the following standard costs: Actual activity for October: What is the total variable manufacturing overhead variance in October?

How is the variable overhead rate variance calculated?

Pyne Corporation's actual output for a period was assigned the standard labor cost of $32,500.If the company had an unfavorable direct labor rate variance of $1,750 and a favorable direct labor efficiency variance of $975,what was the total actual cost of direct labor incurred during the period?

The actual cost of direct materials is $10.50 per pound.The standard cost per pound is $10.25.During the current period,9,100 pounds of direct materials were used in production and 17,500 pounds were purchased.The standard quantity of direct materials for actual units produced is 17,300 pounds.How much is the direct materials quantity variance?

Tommy's Toys produces two types of toys: trains and dolls.Tommy's uses stainless steel to manufacture the trains and plastic to manufacture the dolls.Information regarding the usage of steel and plastic for the past year follows: What is the direct material quantity variance for plastic in the dolls?

Work in process inventory is debited for which of the following when recording the use of direct materials in the production process?

The Laramie Corporation manufactures Product X that consumes a large amount of overhead.For the month of October Laramie produced 15,250 units of Product X and incurred actual overhead costs of $375,000.The standard costs developed for Product X by Laramie follow: What was the total variable overhead variance for Product X in October?