Exam 10: Standard Costing and Variance Analysis

Flying High Company manufactures model airplanes.During the month, it manufactured 10,000 airplanes.Each one used an average of 6.5 direct labor hours and an average of 1.5 sheets of aluminum.It normally manufactures 7,500 airplanes.Materials and labor standards for making the airplanes are: Compute the standard number of sheets of aluminum allowed for a volume of 10,000 airplanes.

Majenta Company uses a standard costing system.The following information pertains to direct labor costs for February: ? -How many actual labor hours were worked during February for Majenta Company?

Matching Match each item with the correct statement below. -A tool used to provide the production data needed to calculate the standard unit cost.

If actual fixed overhead was $54,000 and there was a $1,300 unfavorable spending variance and a $1,000 unfavorable volume variance, budgeted fixed overhead must have been

Which of the following mathematical expressions is used to compute the materials usage variance?

The _____________________ measures the difference between the direct materials actually used and the direct materials that should have been used for the actual output.

In a standard cost system, costs are assigned to all of the following, except for

The total fixed overhead variance is calculated by the following formula:

______________________ is a prerequisite for assigning responsibility.

Which of the following costing methods focuses on the continuous reduction of the manufacturing costs of existing products and processes?

Matching Match each item with the correct statement below. -Standards that are rigorous but achievable and reflect reasonable efficiency.

The ________________________ measures the change in the actual variable overhead cost that occurs because of efficient (or inefficient) use of direct labor

_______________________ is the difference between the actual variable overhead and applied variable overhead.

The standard fixed overhead rate is often calculated as

Which of the following is used to calculate the fixed overhead volume variance?

Pentyl Company manufactures t-shirts.During the year, it manufactured 100,000 t-shirts, using 3 hours of direct labor at a rate of $7 per hour.The materials and labor standards for manufacturing the t-shirts are as follows: - It took Pentyl 600,000 yards at $3.50 per yard to make the 100,000 t-shirts. What is the entry to record the issuance and usage of materials?

The unit standard quantity of inputs is vital to the computation of total amount of inputs allowed for the actual output and efficiency variances.

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 fixed overhead spending variance for Griffen?

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 efficiency variance?

Ideal standards can be achieved under efficient operating conditions.