Exam 10: Standard Costing and Variance Analysis

Matching Match each item with the correct statement below. -This is the standard plus the allowable deviation when determining whether variances are significant.

The two variances for variable overhead are

Favorable variances are credits and unfavorable variances are debits.

The fixed overhead spending variance

Which of the following is not true about Kaizen Standards?

___________________ is calculated by multiplying the unit labor standard by the actual output.

The Perfect Tool Company (South America Division) produced 80,000 saw blades during the year.It took 1.5 hours of labor per blade at a rate of $8.50 per hour.However, its standard labor rate is $8.00.Its labor efficiency variance was an unfavorable $40,000. - What is Perfect's labor rate variance?

Alkyl Fliers Company produces model airplanes.During the month of November, it produced 3,000 planes.The actual labor hours were 5 hours per plane.Its standard labor hours are 10 hours per plane.The standard labor rate is $8 per hour.At the end of November, Alkyl Fliers found that it had a favorable labor rate variance of $12,000. What was Alkyl Fliers' actual cost per labor hour?

Ethene Builders constructs houses.The standard labor rate is $20 per hour and the standard number of hours is 13,000 hours per home.During the year, it constructed 12 homes using 15,000 labor hours per home and a rate of $23 per hour. Calculate the labor efficiency variance.

Which of the following is true about ideal standards?

Griffen Corporation uses a standard costing system.Information for the month of May is as follows: The overhead rate is based on a normal volume of 12,000 direct labor hours.Standard cost data at 12,000 direct labor hours were as follows: - What is the variable overhead efficiency variance for Griffen?

Claire Company uses a standard costing system.The following information pertains to direct labor costs for February: - What is the total labor budget variance for Claire Company?

Glascro Company's standard cost is $500,000.The allowable deviation is ±15%.Its actual costs for six months are as follows: The actual cost which is higher than the upper control limit is _____.

The ____________________ measures the difference between the actual costs of materials and their budgeted costs for actual level of activity.

The Perfect Tool Company (South America Division) produced 80,000 saw blades during the year.It took 1.5 hours of labor per blade at a rate of $8.50 per hour.However, its standard labor rate is $8.00.Its labor efficiency variance was an unfavorable $40,000. - What is Perfect's standard hours allowed for a volume of 80,000 blades?

The ____________________ is the difference between budgeted fixed overhead and applied fixed overhead.