Exam 10: Standard Costs and Overhead Analysis

What was the materials quantity variance for January?

What was the direct labour rate variance for March?

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

What was the materials price variance for the month?

(Appendix 10B)Nova Corporation produces a single product and uses a standard cost system to help control costs.Overhead is applied to production on the basis of machine hours.According to the company's flexible budget,the following overhead costs should be incurred at an activity level of 18,000 machine hours (the denominator activity level chosen for the current year): During the current year,the following operating results were recorded: At the end of the year,the company's Manufacturing Overhead account showed total debits for actual overhead costs of $145,100 and total credits for overhead actually applied of $136,000.The difference ($9,100)represents underapplied overhead,the cause of which management would like to know. Required: a)Compute the predetermined overhead rate that would have been used during the year,showing separately the variable and fixed components of the rate. b)Show how the $136,000 of "Applied Costs" was computed. c)Analyze the $9,100 underapplied overhead figure in terms of the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances. d)(Appendix 10B)Prepare a journal entry to record the variable overhead costs incurred and applied,including the results of the variance analysis. e)(Appendix 10B)Prepare a journal entry to record the fixed overhead costs incurred and applied,including the results of the variance analysis.

What was the materials quantity variance for the month?

(Appendix 10B)To record the purchase of direct materials,the general ledger would include what entry to the Materials Price Variance account?

What was the fixed overhead budget variance for the period,rounded to the nearest dollar?

The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: Required: a)What was the variable overhead spending variance for the month? b)What was the variable overhead efficiency variance for the month?

What was the variable overhead efficiency variance for the month?

What was the materials quantity variance for the month?

What were the direct materials quantity variances for raw materials A and B,respectively?

The Adlake Company makes and sells a single product and uses a standard cost system.During October,the company budgeted $300,000 in manufacturing overhead cost at a denominator activity of 20,000 machine hours.At standard,each unit of finished product requires 5 machine hours.The following cost and activity were recorded during October: What was the amount of overhead cost that the company applied to work in process for October?

(Appendix 10C)Which of the following is (are)NOT used in calculating sales mix variances for two products that are close substitutes?

Purchase of poor quality materials will generally result in a favourable materials price variance and an unfavourable labour rate variance.

Because managers want stable unit cost figures,the accountant creates an artificial stability so far as fixed costs are concerned by applying fixed costs to products as if the fixed costs were really variable.

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

What does an unfavourable labour efficiency variance indicate?

For August,what was the fixed overhead budget variance?

Under a standard cost system,who is usually held responsible for the materials price variances?