Exam 10: Standard Costing and Variance Analysis

Which of the following is used to calculate total variable overhead variance where VOH = Variable Overhead, SVOR = Standard Variable Overhead Rate, SH = Standard Hour Allowed, and AH = Actual Direct Labor Hours Used?

The _____________________ is the difference between actual fixed overhead and applied fixed overhead.

______________ focuses on the continuous reduction of the manufacturing costs of existing products and processes.

Responsibility for the fixed overhead volume variance is

James Company manufactures t-shirts.During the year, it manufactured 250,000 t-shirts, using 2 hours of direct labor at a rate of $8.50 per hour.The materials and labor standards for manufacturing the t-shirts are: -What is James' materials price variance assuming that materials purchased equals materials used?

The volume variance is often interpreted as a measure of capacity utilization.

_______________ often means the difference between success and failure or between above-average profits and lesser profits.

A kaizen standard reflects the realized improvements for the past periods and a search for more improvements for the future.

Inefficient usage of labor implies a(n)

All of the following are true except

The ______________________ is the difference between the actual fixed overhead and the budgeted fixed overhead.

The two variances for fixed overhead are

The ______________________ can be used to compute the total amount of inputs allowed for the actual output.

During June, Cisco Company produced 12,000 chainsaw blades.The standard quantity of material allowed per unit was 1.5 pounds of steel per blade at a standard cost of $8 per pound.The actual cost was $7 per pound.The actual pounds of steel that Cisco purchased were 19,500 pounds.All materials purchased were used.Calculate Cisco's materials usage variance.

Budgeted variable overhead for the year is $150,000.Expected activity is 30,000 standard direct labor hours.The actual hours worked were 15,000 and the standard hours allowed for actual production were 18,000.The variable overhead efficiency variance is:

Match the variance with its correct calculation. -Actual Costs

James Company manufactures t-shirts.During the year, it manufactured 250,000 t-shirts, using 2 hours of direct labor at a rate of $8.50 per hour.The materials and labor standards for manufacturing the t-shirts are: - It took James 1,400,000 yards at $2.50 per yard to make the 250,000 t-shirts. What is James' labor rate variance?

The sum of the price and usage variances will add up to the total materials variance only if the materials purchased is equal to the materials used.

Which of the following is true regarding currently attainable standards?

Which of the following formulas is used to calculate the materials price variance?